Full formBanking & Finance
KYVstands forKnow Your Vendor
Full Form of KYV
What is KYV?
Know Your Vendor (KYV) is a due diligence process used by banks, financial institutions, and corporations in India to verify the identity, credentials, and legitimacy of vendors or suppliers before entering into business relationships. Inspired by the widely adopted KYC (Know Your Customer) framework, KYV focuses on the supply side—ensuring that vendors are compliant with tax laws, anti-money laundering regulations, and industry standards. In India, KYV is increasingly mandated under procurement guidelines by public sector banks, government departments, and large private companies to prevent fraud, tax evasion, and shell company transactions. The process involves collecting documents such as GST registration, PAN card, business address proof, bank account details, and ownership structure. It is typically conducted during vendor onboarding and periodically renewed. KYV also helps organizations meet compliance requirements under the Prevention of Money Laundering Act (PMLA) and the Companies Act. For students preparing for banking exams (like IBPS, SBI PO) or professional certifications in finance (CA, CFA), understanding KYV is important as it appears in questions related to risk management and operational controls. While KYC targets customers, KYV targets vendors—both are pillars of a robust financial ecosystem.
KYV का फुल फॉर्म
अपने विक्रेता को जानें
Example
Before the contractor could supply equipment to the government hospital, the purchase department completed the KYV process to verify their GST and PAN details.
KYV — frequently asked questions
What is the full form of KYV?
The full form of KYV is Know Your Vendor, a due diligence process for verifying vendors and suppliers before onboarding.
How is KYV different from KYC?
KYC (Know Your Customer) verifies individuals or entities as customers, while KYV verifies vendors or suppliers. Both aim to prevent fraud and ensure regulatory compliance but apply to opposite ends of a transaction.
Why is KYV important for businesses in India?
KYV helps Indian businesses avoid dealing with fraudulent or non-compliant vendors, reduces the risk of tax evasion and money laundering, and ensures adherence to government procurement norms and banking regulations.