Getting your KYC done is necessary if you want to open a bank account or a Demat account, avail of a loan, invest or perform a similar financial activity. KYC or “Know Your Customer” is a process used for the Customer Identification Process. SEBI (Securities and Exchange Board of India) has set strict guidelines for financial institutions like banks and financial intermediaries to verify the identity of their customers.
The KYC process requires customers to provide certain documents that help prove their identity, financial status, residence, occupation, and other personal information.
The process has become much simpler with the introduction of e-KYC (Electronic Know Your Customer), allowing investors to complete the entire process online without submitting physical documents. Here are the documents required for mutual fund e-KYC and how you can check your status.
Why is mutual fund KYC compulsory?
KYC is a necessary process that must be completed before you can invest in mutual funds. The KYC process helps mutual fund companies ensure that no fraudulent activities or money laundering occur. With mandatory Know Your Customer (KYC) regulation, it becomes difficult for a person to open multiple accounts for tax evasion or undeclared income. It further ensures the safety of other investors’ funds, as the financial history of every individual is carefully evaluated.
Typically, the KYC procedure involves verifying an individual’s identity documents, including government-issued photo IDs (such as passport and driver’s licence). Additionally, AMCs require supplementary documents such as evidence of current address, date of birth, etc., which are useful for further customer verification. Ultimately, this comprehensive KYC process helps to build trust between investors and the mutual fund houses while ensuring that only legitimate people can participate in the market activities with their funds.
List of documents required for mutual fund e-KYC
For proof of identity
- PAN card with photograph
- Aadhaar card
- Driving licence
- Voter ID card
For proof of address
- Ration card
- Voter ID card
- Driving licence
- Registered Lease Agreement
- Last three months’ bank account statement
- Utility bills like electricity, gas, landline telephone, etc., (not more than three months old)
Steps to complete eKYC for mutual fund
- Online KYC for mutual fund
- Open the website of a mutual fund house or a SEBI-registered KRAs (KYC Registration Agency)
- Create a login with your personal details
- Fill out the application form with all the required details
- Once done, upload the necessary KYC documents in scanned format
- Today, most institutions allow applicants to verify their identity and documents online via video call. The applicant needs to grant access to the camera, location, and microphone during the video call so that the representative can verify the information.
Note: Many investment platforms and fund houses also allow users to complete the e-KYC process digitally with OTP-based Aadhaar authentication. However, note that e-KYC-verified investors can invest up to ₹50,000 per annum in mutual funds. To invest beyond that, you need to do in-person verification (IPV).
- Offline KYC
- Download the physical application form
- Fill out the relevant details
- Now attach the self-attested hard copies of the necessary documents required for KYC to the application form and submit them to the AMC/fund house/KRAs or any financial advisor’s office.
- After submitting the documents, it may take up to seven days for KRA to approve your KYC.
How to check mutual fund KYC status online?
- Visit the website of any KYC registration agency – such as CVL KRA.
- Provide your PAN details and click on ‘Submit’ to track the status
- If your KYC status displays ‘In process’ or ‘Verified’, you can begin with the registration process for mutual funds.
- If your KYC status is ‘Invalid data’, initiate the KYC process again with the correct documents and details in the application form. Make sure to double-check all relevant information before submitting it.
E-KYC is a vital process for mutual fund investments as it ensures that all the KYC requirements are met for a hassle-free investing experience. While e-KYC for mutual funds may seem time-consuming, it is simple and can be completed in just a few minutes. Just keep the required KYC documents handy before beginning the process.
It is also essential to keep your KYC records updated with your latest mobile number, bank account, and address with any relevant changes. This way, you can take advantage of all critical updates and rest assured that you are in control of your finances.
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