Is anyone using your KYC document to procure bank loan or other services?

Your KYC documents can be used by someone to get a passport, or to open a bank account, or to even procure a loan.

To open a bank account, you need to provide a photograph, an identification proof and an address proof. The Reserve Bank of India (RBI) calls them KYC or Know Your Customer documents.

Besides opening a bank account, you need these KYC documents to avail a range of services--mobile and internet connection, LPG connection, booking a hotel stay.

Given that KYC documents are extremely important, therefore if used carelessly, they can land you in deep trouble.

WHAT ARE KYC DOCUMENTS?

According to the Central government, you can use six kinds of documents to open a bank account. Based on these documents, the bank certifies your identity.

These documents are: Passport, Driving license, Voter ID card, PAN card, Aadhaar card and NREGA Job card.

You generally self-attest the copies of these KYC documents and submit it to the bank. Once the bank checks these documents, your account is opened.

Based on these KYC documents, you also get new mobile and internet connection besides a host of other services.

BE CAREFUL WHILE USING KYC DOCUMENTS

Since you use KYC documents to avail of several services, it is best to consider a few precautions while using them.

  • Do not allow anyone to use your KYC documents. Letting your friends use the documents is tantamount to fraud. If caught, you may face severe punishment. Even if you are not caught, using the documents in future can land you in a spot.
  • While using a KYC document for procuring any service, like getting a mobile connection, remember to put a disclaimer on the copy. For instance, if you are using the KYC document to get a SIM card, then write the date on which you applied for the SIM and the name of the company. After mentioning these details, sign the copy of the document.
  • Ensure you are always around when you ask someone to get a photocopy of your KYC document. Be vigilant to check if someone is making extra copies of your KYC document. If you realise that the copy is not clear, destroy it to make sure that no else can use it.

Your KYC documents can be used by someone to get a passport, or to open a bank account. If these documents are fraudulently used to procure a loan, you may have to bear the economic burden.

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