Do You Need KYC For Debit And Credit Cards?

Before you open any type of account with a bank, you need to meet what is called, "know your customer (KYC) guidelines.

It is basically nothing, but, ascertaining the identity of a person, through an appropriate address proof or an identity proof. A number of documents are acceptable for the purpose of establishing the identity or the address proof of a person.

Among these include the Aadhar Card, Passport, Driving Licence etc. Meeting KYC requirement is a must for all bank accounts. Of course, you can still open a small account without enough proof, but, the transactions are restricted. For example, with a small account the balance in the account is restricted to just Rs 50,000 each year.

Is KYC needed for debit and credit cards?

Yes, KYC is also applicable for all debit and credit cards. So, if you are planning to apply make sure, you have one address proof and one identity proof. Aadhaar Card, Passport and Driving license serve the purpose of both identity and address proof.

What happens if you do not provide KYC documents?

In case you do not provide KYC documents, the bank can proceed to close your account. Before closing the account, the bank can undertake, what is called partial freezing. In the case of partial freezing the bank will block credits and disallow debits from the account.

However, before doing so, the bank may give a notice of three months to the customer. After that a further 3-months notice period could be granted to the customer. Some guidelines may vary from bank to bank.

It is extremely important to make sure that you have your KYC documents. These days, you also cannot open a bank account without a PAN card. So, both the listed KYC documents and the PAN card are two important set of documents that are needed to open an account.

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