KYC stands for Know Your Customer. It is process by which financial institutions obtain information about the customers. The KYC process includes making reasonable efforts to determine true identity beneficial ownership of accounts, source of funds, and nature of customer's business.

The objective of KYC process is to prevent financial intermediaries being used, intentionally or unintentionally by criminal elements for money laundering to fund illegal activities such as terrorism.

Some of illustrations where KYC norms will be applicable are as under:
Any customer opening a new account, e.g. buying a policy.
Any existing customer in whose case required KYC documents are not complete in existing account as per the applicable KYC standards.
When the financial intermediary feels it it necessary to obtain additional information from existing customers based on the conduct of the account.
Based on instructions received from the regulatory authority.
When there are changes in signatories, mandate holders, beneficial owners, etc.

Compliance with the KYC requirements is mandatory as it is a legal requirement.

No, if you provided sufficient document which is KYC compliant, then for another transaction, providing of documents is not necessary.

In such cases, the Guardian has to be KYC compliant.

Customers must send their request for change in address supported by the self-attested copy of valid document evidencing the new address to NICB counter personnel within reasonable time frame or your next business visit to NICB.

In the event of any business proposal / application form being found deficient due to lack of required information / insufficiency of mandatory KYC documentation, further transactions may not be permitted. It will render the application as invalid and will not be processed further.