Last Updated: 1 July 2025
KYC & Verification Policy
AgroZap Private Limited conducts Know Your Customer ("KYC") and business verification for all registered Users. This is mandatory to comply with the Prevention of Money Laundering Act 2002 (PMLA), IT Act 2000, GST Act 2017, and to maintain the integrity of the Platform as a trusted B2B marketplace.
1. Who Must Complete KYC
KYC is mandatory for:
- All Sellers (Manufacturers, Importers, Exporters, Formulators, Distributors, Dealers, Suppliers) before their products are listed.
- All Buyers before they are permitted to place Purchase Orders.
- Any User wishing to access credit facilities, payment features, or escrow services.
2. Documents Required
2.1 For All Business Entities
| Document | Purpose |
|---|---|
| GST Registration Certificate | Business identity, tax compliance verification |
| PAN Card (Entity) | Income tax identity verification |
| Aadhaar Card + PAN (Proprietor / Director / Partner) | Individual identity verification of authorised signatory |
| Cancelled Cheque / Bank Statement | Bank account verification for payment settlement |
| Business Address Proof | Registered / operational address verification |
2.2 Entity-Specific Documents
| Entity Type | Additional Documents Required |
|---|---|
| Private / Public Limited Company | Certificate of Incorporation, MOA/AOA, Board Resolution authorising Platform use |
| LLP | LLP Agreement, Certificate of Incorporation |
| Partnership Firm | Partnership Deed (registered) |
| Proprietorship | Shop & Establishment Certificate / Trade Licence |
| Pesticide Manufacturer | CIB Manufacturing Licence, pesticide registration certificates |
| Pesticide Importer | Import Export Code (IEC), CIB import licence |
| Fertilizer Manufacturer / Dealer | State-level fertilizer licence under Fertilizer Control Order |
| Seed Company | Seed licence under Seeds Act 1966 |
| Exporter | Import Export Code (IEC), RCMC (if applicable) |
3. Verification Process
- Document Upload: User uploads all required documents through the secure KYC portal in their account dashboard.
- Automated Checks: PAN validated against Income Tax database; GSTIN validated against GSTN portal; document legibility and completeness checks.
- Manual Review: AgroZap's verification team reviews all documents for authenticity, consistency, and regulatory compliance.
- Approval / Rejection: User notified via email and platform notification.
- Account Activation: Full Platform access granted upon successful KYC.
4. Verification Timelines
| Stage | Timeline |
|---|---|
| Document submission acknowledgement | Immediate (automated) |
| Automated validation | Within 1 hour |
| Manual review | 1 – 3 business days |
| Approval notification | Within 3 – 5 business days |
| Rejection (with reasons) | Within 3 – 5 business days |
| Re-verification after resubmission | 2 – 3 business days |
5. Common Rejection Reasons
- Document is blurred, incomplete, or partially visible.
- GSTIN does not match the business name or address provided.
- PAN details do not match the entity registration documents.
- Business registration documents are expired.
- Required regulatory licence (e.g., CIB, Fertilizer licence) is absent or expired.
- Mismatch between signatory name on documents and information provided during registration.
- Bank account details not in the business name.
- Document appears to have been digitally altered.
Upon rejection, Users will receive a detailed reason and may resubmit corrected documents. Accounts remain restricted until KYC is successfully completed.
6. Ongoing KYC Compliance
- Users must update their KYC documents within 30 days of any document expiry (licence renewal, GST certificate amendment, change of directors, etc.).
- AgroZap will send renewal reminders at 60 days and 15 days before expiry of key documents.
- Material changes to business structure (merger, acquisition, change of directors, address change) must be notified to AgroZap within 15 days.
- Periodic re-verification may be triggered by AgroZap based on risk parameters or regulatory requirements.
7. Data Security for KYC Documents
All KYC documents are stored with AES-256 encryption. Access is restricted to authorised verification personnel. Documents are retained for 7 years post-account closure as required by PMLA and IT Act. Documents are not shared with third parties except as required by law or for verification purposes (e.g., GSTN portal validation).
8. Compliance Obligations
AgroZap reserves the right to report suspicious KYC information to the Financial Intelligence Unit – India (FIU-IND) or other authorities as required under PMLA. Users who knowingly submit fraudulent KYC documents may be prosecuted under the Indian Penal Code 1860, IT Act 2000, and PMLA 2002.