What is the main purpose of Know Your Customer KYC scheme ........

Economic Affairs Financial Inclusion

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What is the main purpose of Know Your Customer (KYC) scheme?

To make better relations with customers

To bring more transparency in Banking Sector

To avoid fraudulent dealings

To enforce better tax compliance

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Explanation:

3rd option is correct.

The objective of KYC guidelines is to prevent banks from being used, intentionally or unintentionally, by criminal elements for money laundering activities. Related procedures also enable banks to better understand their customers and their financial dealings. This helps them manage their risks prudently.