1. Objective of the KYC Policy

The objective of this policy is to:

• Verify the identity and address of customers
• Prevent misuse of financial services for illegal activities
• Ensure compliance with RBI and AML regulations
• Establish customer risk categorization and monitoring
• Protect customer accounts from fraudulent activities

2. Customer Identification Process (CIP)

Every customer applying for a loan with Konark Finserv shall undergo mandatory KYC verification before loan disbursement.

Documents Accepted for KYC

• Aadhaar Card
• PAN Card
• Passport
• Driving License
• Voter ID
• Officially Valid Documents (OVDs) as permitted by RBI

Address Verification

Customers may be required to provide current address proof if the address mentioned on identity documents differs from the communication address.

3. Digital KYC & Video Verification

Konark Finserv may use digital onboarding and electronic KYC verification methods as permitted under applicable RBI regulations.

• OTP-based Aadhaar authentication
• CKYC verification
• Video KYC (V-CIP)
• Face match and liveness detection
• PAN validation through authorized systems

Customers must ensure that all submitted information and documents are accurate, authentic, and up to date.

4. Customer Due Diligence (CDD)

Konark Finserv performs Customer Due Diligence before establishing any lending relationship.

CDD Measures Include:

• Identity verification
• Mobile number verification
• Bank account validation
• Assessment of financial information
• Fraud and blacklist screening
• Monitoring suspicious activities

5. Risk Categorization

Customers may be categorized into low, medium, or high-risk categories based on internal risk assessment parameters including:

• Nature of occupation
• Transaction patterns
• Geographical location
• Repayment behavior
• Regulatory alerts or suspicious activity indicators

Enhanced Due Diligence (EDD) may be conducted for high-risk customers.

6. Periodic KYC Updation

Customers may be required to periodically update their KYC information in accordance with RBI guidelines.

• Re-KYC notifications may be sent through SMS/email
• Accounts may face restrictions if KYC is not updated
• Updated documents may be requested whenever necessary

7. Monitoring of Transactions

Konark Finserv reserves the right to monitor transactions for suspicious activities and report such activities to regulatory authorities whenever required under applicable laws.

• Fraudulent transactions
• Identity misuse
• Money laundering indicators
• Unusual repayment patterns

8. Data Privacy & Security

All customer data collected during KYC verification shall be securely stored and processed in compliance with applicable data protection and RBI regulations.

• Encrypted storage of sensitive information
• Restricted internal access controls
• No unauthorized sharing of customer data
• Secure digital verification systems

9. Non-Compliance & Account Restrictions

Konark Finserv reserves the right to reject, suspend, or terminate customer relationships in case:

• False or misleading information is provided
• KYC documents are unverifiable
• Suspicious or illegal activities are detected
• Mandatory KYC updation is not completed

10. Policy Review & Amendments

This KYC Policy shall be reviewed periodically and may be updated in line with changes in RBI guidelines, AML laws, or operational requirements.

• Periodic compliance review
• Board-approved amendments
• Regulatory updates implementation