Know your customer is an essential part of anti-money laundering. It's about verifying identity, gathering customer info, and understanding the purpose of transactions. Let us learn in detail. The Reserve Bank of India mandates all NBFCs to implement robust know your customer for before any financial dealings. RBI mandates all NBFCs to understand the KYC and its importance in financial security. Develop a comprehensive KYC policy for the organization. Train the staff on KYC procedures. Implement KYC process for all financial transactions and monitor compliance. The objective of KYC is to ascertain customer identity to ensure that customer exists, • Obtain satisfactory evidence of the customer's legal identity and address • Interview the customer and obtain required information • Assertain that the customer address as mentioned is correct Establish purpose of transaction Monitor transactions Obtain detailed information about the customer profile before entering any financial transaction kyc means identifying verifying and onboarding a customer it also includes updating information and continuously monitoring transactions who is a customer let's understand in detail a customer is the main applicant that is the trust or society or other form of corporate entity running the school college or another kind of educational or skilling organization an individual applying for a personal loan for education coaching skilling of self or a family member termed as student loan any co-applicant of the loan who may or may not be an office bearer in in the trust or society, or a parent family member of an individual seeking a student loan, any guarantors to the loan acting, so on behalf of the applicants to the loan. KYC involves four key components, customer acceptance policy, customer identification procedures, transaction monitoring, and risk management. Let us understand each element in detail.