KYC, or Know Your Customer, is the identity and address verification a regulated institution must complete before opening an account or accepting a deposit. For a pigmy or daily-deposit account it works the same as for any other product: proof of identity, proof of address and photographs, checked once at account opening rather than repeated on every visit from the collecting agent.
In practice, institutions ask for broadly similar documents. Chikkamagaluru District Central Co-operative Bank's pigmy account requires an application form, two passport-size photographs, an Aadhaar copy, PAN and an address proof, and issues the first passbook free; nomination is available and minors may hold accounts. Cosmos Bank asks for identity and address proof plus two photographs. Neither list is unusual; it is the standard document set used across Indian retail banking.
Where a pigmy account differs slightly is where the paperwork can happen. RBI's doorstep banking rules for co-operative banks allow KYC documents to be submitted at the customer's door rather than at the counter, with an acknowledgment issued on the spot, provided the agreement names the address at which the service is delivered. That convenience does not lower the underlying standard: the same identity and address checks apply whether you complete them at a branch or hand them to an agent at your doorstep, and a bank that skips this step for a pigmy account is not following its own approved scheme.