KYC stands for 'Know Your Customer' or 'Know Your Client'. It is needed in various industries where businesses interact with customers and clients to prevent fraud, money laundering, identity theft, and other illicit activities. Some of the industries where KYC is commonly required include

  • Banks, credit unions, and financial institutions need KYC to open accounts, provide loans, and manage financial transactions.
  • Insurance companies verify customer identities and assess risk when underwriting policies.
  • Online casinos and gaming platforms use KYC to ensure legal age and prevent money laundering.

Sandbox API enables businesses to automate KYC for their individual customers and businesses.

Business KYC

KYC for businesses can be done with the following type of APIs

  1. CIN & DIN: The Ministry of Corporate Affairs is an Indian government ministry primarily concerned with the administration of the Companies Act 2013 and maintains details on all incorporated companies.
  2. GSTIN:Goods and Services Network (GSTN) assigns a unique GST Identification Number (GSTIN) to businesses operating within a state or Union territory. It acts as Identity verification, operational status, business information etc.
  3. TAN: TAN is essential for those responsible for tax deduction (TDS) or tax collection (TCS), ensuring compliance with tax regulations. It can be used to verify Tax compliance, business validity, risk assessment etc of the businesses.
  4. PAN: PAN of the business provides insights into the business's financial transactions, industry classification, and regulatory adherence, aiding risk assessment and decision-making during business relationships.

Individual KYC

Businesses can do KYC for individuals with

  1. Aadhaar: Aadhaar is an individual identification issued by the UIDAI. Aadhaar number serves as proof of identity and address, anywhere in India. Hence, verifying Aadhaar is one of the primary and most preferred ways to KYC customers.
  2. Bank Account: Bank Account Verification is part of customer onboarding due diligence to ensure the legitimacy of the user and their ownership of the bank account, especially when services involve exchanges of money and financial data.
  3. PAN: PAN of individual involves confirming the individual identity, ownership details, and tax compliance history facilitating informed decisions in various transactions and services.