Know Your Customer (KYC) compliance is a mandatory process for investors in mutual funds, as per the Prevention of Money Laundering Act, 2002 and guidelines set by the Securities and Exchange Board of India (SEBI). This regulation ensures seamless transaction linking to the investor and helps prevent financial fraud. Here's a detailed guide on how to check and update your KYC status for mutual fund investments:
Checking Your KYC Status
Several avenues are available to check your KYC status online. You can visit the websites of any of the KYC Registration Agencies (KRAs). The five authorized KRAs are:
- CVL KRA
- NDML KRA
- DOTEX KRA (Now NSE KRA)
- CAMS KRA
- Karvy KRA
Here’s a step-by-step guide to check your KYC status via KRA websites:
- Visit the KRA Website: Go to the website of any of the KRAs mentioned above.
- Locate the KYC Inquiry Section: Look for a "KYC Status" link or a "KYC Inquiry" section on the homepage.
- Enter PAN Details: Enter your 10-digit Permanent Account Number (PAN) and the captcha code provided.
- Submit and View Status: Click the submit button. Your KYC status will be displayed on the screen.
The displayed KYC status can be one of the following:
- KYC Validated: This means your KYC is complete and valid, and you don't need to take any further action.
- KYC Registered: This indicates that your KYC is registered, and you can continue transactions in your existing mutual fund investments. However, to invest in a new mutual fund where you don't have existing investments, you may need to update your KYC to ‘KYC Validated’.
- KYC On Hold: This means your KYC is currently on hold due to certain discrepancies. The reason for the ‘On Hold’ status could be due to various factors such as a mobile number or email not validated, PAN not linked with Aadhaar, or deficiencies in KYC documents.
Updating Your KYC Status
If your KYC status is "On Hold" or if you want to update it to "KYC Validated," here’s what you need to do:
- Identify the Reason: Check the reason for the "KYC On Hold" status on the Mutual Fund/RTA website.
- Remediate the Issue: Address the specific issue causing the "On Hold" status. This might involve validating your mobile number or email, linking your PAN with Aadhaar, or correcting deficiencies in your KYC documents.
- KYC Modification: You can update or modify your KYC details through the online portals of mutual funds or RTAs. This process typically involves using your PAN and Aadhaar, and can be done via XML, Digi-locker, or M-Aadhaar.
- Re-KYC with Aadhaar: As per the latest regulations, doing a re-KYC with Aadhaar as an Officially Valid Document (OVD) is recommended for seamless transactions in the securities market. If re-KYC is done with any other OVD besides Aadhaar, the customer might have to repeat the process when investing with a new mutual fund.
- Upload Documents: You may need to upload self-attested copies of documents such as your PAN card, address proof (Aadhaar, Passport, Driving License, Voter ID), a bank cheque copy, your signature, and a live video or photo.
Important Considerations
- PAN is Mandatory: Ensure your PAN is updated in your respective folios.
- Self-Attestation: All PAN-based service requests should be accompanied by a self-attested copy of your PAN card.
- Aadhaar for Seamless Transactions: Using Aadhaar for KYC is recommended as it is a universally accepted document, allowing for hassle-free transactions across different mutual funds.
- Existing Customers: Existing mutual fund customers with a "KYC Registered" status can continue to transact freely.
- New Customers: New customers need to complete their KYC with an officially valid document or Aadhaar-based KYC as a one-time activity.
By following these steps, you can easily check and update your KYC status, ensuring a smooth and compliant investment journey in mutual funds.
