Verifying your identity on Paytm, also known as KYC (Know Your Customer) is a practice that guarantees that banks have documentary evidence of the identity of all their clients.
This is a legal obligation by the Canadian government when processing certain transactions. It is to prevent any fraudulent or illegal behaviour when moving money, such as money laundering. All banks are required to complete KYC with their customers.
Although KYC regulations are becoming standard in all industrialized countries, they first became the law in Canada as part of the 1991’s Proceeds of Crime (Money Laundering) Act and were expanded in December 2001 under the post-9/11 Anti-Terrorism Act to include government mandated rules to deter terrorists from operating within the Canadian banking system.