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LoyaltyBoard feature

Verified partners before the first rupee is paid

Digital KYC in LoyaltyBoard verifies each member's identity — with PAN verification, Aadhaar eKYC and bank account validation — during enrolment, so rewards only go to real, verified people. It is included from the Growth plan.

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  • PAN verification and Aadhaar eKYC
  • Bank account validation for cash rewards
  • KYC on the spot during field visits

Why it matters

Why loyalty programs need KYC

Every loyalty program that pays rewards is a target for misuse. Without verified identities, one person can run several accounts, claim rewards meant for others or cash out points they never earned. KYC ties each account to a real, verified person before money or rewards move.

KYC also matters for tax. Business rewards above ₹20,000 per recipient in a financial year attract TDS — under Section 194R until March 2026 and Section 393(1) of the Income-tax Act, 2025 from 1 April 2026. A verified PAN makes correct deduction and reporting possible.

Done digitally, KYC doesn't slow enrolment down. Members can complete it in the app, on WhatsApp or with a field rep, and redemption can be gated on their verification status.

How it works

How Digital KYC works

Verification happens once, at enrolment.

  1. 1Enrol

    Member joins

    By QR code, WhatsApp, app or field rep.

  2. 2PAN

    PAN verified

    The member's PAN is checked.

  3. 3Aadhaar

    Aadhaar eKYC

    Identity confirmed with Aadhaar eKYC.

  4. 4Bank

    Account validated

    Bank account validated for cash rewards.

Capabilities

KYC built into the program

Verification connects to fraud checks and rewards.

Identity verification

PAN verification and Aadhaar eKYC.

Bank validation

Accounts confirmed before UPI or bank payouts.

Redemption gating

Only verified members can redeem.

Field-assisted KYC

Reps complete KYC on the spot during visits.

Works with fraud checks

Pairs with AI fraud detection on the Growth plan.

Ready for TDS

Verified PANs support TDS deduction and reporting.

Getting it right

Making KYC easy for partners

Ask for KYC at the right moment. Many programs let members enrol and start earning straight away, and ask for KYC before their first redemption — when the member has a clear reason to complete it.

Offer help where it is needed. Some tradespeople and small retailers prefer to complete KYC with a field rep they know rather than on their own. Field-assisted KYC keeps enrolment moving in those segments.

Explain why you are asking. A short message that KYC protects their rewards and is needed for tax compliance goes a long way towards trust.

  • Let members earn first, verify before redeeming
  • Offer field-rep assisted KYC
  • Explain the reason in the member's language
  • Use the verified PAN for TDS

Rolling it out

Rolling out KYC to an existing member base

If your program already has members, plan the move to verified accounts carefully. Explain why — protecting rewards and enabling cash payouts — in the member's language, and give a reasonable window before KYC becomes required for redemption.

Use your field team. Reps can help partners complete KYC during visits, which matters for members who are less comfortable with apps.

Track completion by region and partner type, and follow up where it lags. A verified base also makes TDS reporting simpler, because PAN is already on record.

  • Explain the reason clearly
  • Give a reasonable window
  • Use field reps to help
  • Track completion by region

Knoxy · AI Chief of Staff

Knoxy watches what KYC can't

KYC verifies who a member is; Knoxy, the AI Chief of Staff in IMAST 360, watches what they do.

Meet Knoxy
  • Flags fraud and anomalies across scans and claims
  • Alerts your team to unusual redemptions
  • Reminds members to complete KYC before redeeming

FAQs

Digital KYC FAQs

Which plan includes Digital KYC?

Digital KYC is available from the Growth plan.

What is Digital KYC in a loyalty program?

Digital KYC verifies a member's identity online — in LoyaltyBoard through PAN verification, Aadhaar eKYC and bank account validation — before they can redeem rewards.

Which plan includes Digital KYC?

Digital KYC is included from the LoyaltyBoard Growth plan.

Do members have to complete KYC before earning?

You decide. Many programs let members earn first and require KYC before their first redemption.

Can field reps help with KYC?

Yes. Field reps can enrol members and complete Digital KYC on the spot.

Why is PAN needed?

PAN verification confirms identity and is needed for TDS on business rewards above ₹20,000 per recipient in a financial year. Confirm specific cases with your tax adviser.

Is bank validation required for cash rewards?

Bank account validation confirms the account before UPI or bank transfer rewards are paid.

Does KYC stop all fraud?

KYC removes fake identities. AI fraud detection then watches for duplicate claims, unusual velocity and other anomalies.

Related

All LoyaltyBoard featuresEvery capability, one page eachAI fraud detectionStop fake scans and claimsUPI & bank payoutsCash rewards to verified accountsTDS 194R complianceAutomatic deduction and reportsBuilt for IndiaKYC, TDS, UPI, Indian languages

Pay only verified partners

See Digital KYC in a live enrolment.

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