What is KYC?
KYC, short for Know Your Customer, is the set of checks a bank carries out to confirm who its customer is. For an individual, that means identity and address documents, such as PAN and an officially valid address proof. For a business, it also means registration documents, details of directors, partners or proprietors, the people authorised to operate the account and, often, the beneficial owners. KYC is not a one-off step: banks refresh it periodically and whenever key details change.
Why it matters for exporters
Foreign money moving into India gets more attention than routine domestic credits. If your KYC is incomplete or out of date, your bank may hold an inward remittance until you update it, which can delay realisation of an export. Mismatches cause similar trouble: if your business name on the invoice, your GST registration, your IEC and your bank account do not match, the bank may raise queries before crediting the money or accepting your EDF.
Keep KYC current for the business and for every authorised signatory who signs EDFs and bank letters. When you change your registered address, add a partner or appoint a new director, inform the bank promptly. It is easier to update KYC proactively than to do it in a hurry while a payment is on hold.
Example
Starling Content LLP moves its registered office from Noida to Gurugram in August 2026 and updates its GST registration but forgets the bank. In November, a USD 9,500 payment arrives from a US client and the bank holds it, asking for updated address proof because the invoice address no longer matches its records. Starling sends a KYC update letter with the new documents, and the funds are released within days.
Common confusion
KYC is not the same as the EDF, though both go to your bank. KYC verifies who you are; the EDF declares what you exported. If a remittance is stuck, read why is my foreign payment on hold.