The directive by Reserve Bank of India allows the banks throughout the country to frame the legal and regulatory requirements linked with KYC or Know Your Customer. Know Your Customer has been developed by the Central Bank and employed by the Government of India in order to counter the menaces like money laundering, hoarding of black money, tax evasion, etc., the regulations that link the Customer's details to the PAN, can be used to access all the information regarding a person's financial transactions. Along with preventing online theft, KYC can also be used in order to avoid identity theft, which is an enormous problem these days. KYC provides the banks with the information regarding their customers so that the banks can easily track their customer's financial holdings and assess the risks linked with it.
KYC uses the customer's personal information to assess his/her financial status so that the bank can have an unbiased assessment of the risks associated with managing the customer's account.
What is KYC?
KYC or Know Your Customer is based on the directives provided by the Reserve Bank of India. It is a system to keep a track of the financial transactions of an individual and is majorly used as a tool to prevent tax evasion. Since it is used for tracking the money trails of an individual, it could also be helpful in preventing money laundering, online identity theft or any other financial fraud which is inflicted electronically.
Need for KYC for Gas Connections
- Submitting the KYC Form is mandatory for the agency to provide smooth service to its customers. Since there are a million customers catered by these gas agencies, its essential for the customer to share their details through KYC Form so that the cylinders don't get delivered in the wrong address. Below listed are the main reasons why the customers need to submit their KYC customers
- Individuals who need a new gas connection are required to fill up the KYC Form. The KYC form is needed to verify the details of the applicant and whether the agency can provide the connection
- If the existing customers wish to regularize their connection, then they will have to submit their KYC Forms. If these people are using the gas connection in someone else's name, then it is mandatory to submit the KYC form. The KYC form can be used to filter out all the duplicate connections
- In situations where a person has taken the gas connection but has not used it, the connection gets dormant and eventually deactivated after six months. Individuals who wish to reactivate their dormant connections will be required to submit the KYC form with their updated information
- KYC form is also necessary to be submitted if someone wishes to transfer their gas connection from one location to another because they have moved out to a different place. Providing this form could help in saving a lot of time and it can also help the gas agencies to screen the customer
- If you have given wrong information then submitting the KYC form along with the supporting documents could be an easy way to rectify the problems in the personal information provided by you
- The agencies can also ask the customer to submit the KYC form in case of applying for a subsidy.
Income Requirements for LPG Subsidy
- The LPG supplied in India is subsidized heavily, keeping in mind that the common man doesn't feel burdened to use this cooking fuel. The cost of subsidized cylinders varies across the states and the prices range from Rs 420 to Rs 465 for a 14.2kg cylinder. A non-subsidized cylinder could cost around 593-605 rupees.
- the government has introduced many measures so that the deprived sections of the society receive the subsidy on gas and it has issued directives to all the states to normalize the prices of the LPG cylinders
- According to the directive issued by the government of India, individuals with an annual income of 10 lakh rupees or more won't be able to avail LPG subsidy. The income could either be of the applicant, anyone from their family or their spouse.
- If an individual is eligible for a subsidy, then they're required to submit a declaration stating their income