How To Check KYC Status For Mutual Funds?
KYC or Know Your Customer was introduced to counter issues of fraudulent activities and false identities and make investing in mutual funds safer. Through KYC, financial institutions can verify the identity of their customers and conduct background checks. Under the Prevention of Money Laundering Act, 2002 and Securities & Exchange Board of India guidelines, KYC check is mandatory for mutual fund investors.
Every investor’s KYC data is stored with a SEBI-registered entity called KYC Registration Agency (CVL KRA). Keep reading to learn more about how to check KYC status for mutual funds on the online portal of CVL KRA.
How to Check KYC Status using PAN Card on CVL KRA Portal?
Most individuals and fund houses use the CVL KRA portal to check the status of an investor’s KYC. The online website of CDSL Ventures Limited (CVL) is highly accessible and user friendly, providing a convenient way to check the KRA database. All you have to do is follow these easy steps:
Step 1: Visit the official portal of CDSL Ventures Limited.
Step 2: Click on “KYC Inquiry” on the top navigation bar.
Step 3: Upon being redirected to a new page, you will see two options to check your KYC status.
Step 4: You can either fill in your ten-digit unique alphanumeric PAN.
Step 5: Alternatively, you can fill in your personal information, like name, date of birth or incorporation, and exempt category. In the last option, you can gain exemption for SIP of up to Rs. 50,000 in mutual funds.
Step 6: Lastly, you have to press “Submit” to see your status. Along with this, you can see the KYC registration date, date of modifications made (if any) and in-person verification checkbox.
Note that you can also use the official website of other KRA agencies, where you will have to undergo very similar steps. However, these processes only work when you have a PAN card.
Different KYC Status
Once you complete the above-mentioned mutual fund KYC status process, you will get to see either of the following statuses:
- KYC Registered: The verification process is complete, and the KRA database successfully holds your information.
- KYC Under Process: Your verification process is under the process of being accepted.
- KYC On Hold: Due to certain inconsistencies with your documents, the process is on hold. You will need to re-submit the incorrect documents.
- KYC Rejected: As your PAN is available with another KRA, the KYC request has been rejected.
- Not Available: KYC records are unavailable with any KRA.
The Necessity of KYC Verification for Mutual Funds
The Reserve Bank of India first introduced Know Your Customer in 2002 to put an end to money laundering, theft, black money and impersonation. SEBI, the securities market regulator, also issued anti-money laundering guidelines to set the norms for mutual fund KYC checks.
A primary reason for introducing Know Your Customer in the mutual fund investment process is to ensure that the deposits are going to the actual investor. Thus, it helps Asset Management Companies to distinguish between legitimate and criminal investors.
The aim is to prevent any cases of financial fraud and check the authenticity of every investment made. By verifying your PAN card details along with other proof of identity and address proof documents, AMCs can establish your genuineness. Once all your documents are in order and verified, you can immediately start investing in any mutual fund of your choice.
Also Read- What Is The Minimum Investment Amount For Mutual Funds?
What is KYC for Mutual Fund Investors?
Upon submitting all the required documents with a processing agency, a centralised database of KRA then stores all these documents. Any fund house or mutual fund agency can then access this database to verify their investor’s identity.
On top of this, any investor who wishes to see if they are KYC compliant before going to a fund house can also access this database and check the status of his/her KYC request. This feature prevents their investment from being rejected and saves the precious time they spend at the fund house.
Fortunately, checking one’s Know Your Customer status is a one-time hassle-free process and fully digitalised. Thus, every time you go to a new fund house to invest in mutual funds, you will not have to bear the trouble of checking your KYC status repeatedly.
List of Documents Required for Mutual Fund Know Your Customer Verification
A mutual fund investor is mandated to submit certain key documents along with a valid Know Your Customer form. The essential documents required to complete the offline KYC process are as follows:
- Self-attested copy of PAN (Permanent Account Number) card
- Proof of Identity (Self-attested): Passport, Aadhaar card, driving licence, voter ID, ID card issued by any recognised government body, etc.
- Proof of Address (Self-attested): Utility bills (electricity, water, gas and landline), passport, voter ID, ration card, registered lease agreement, bank account statement
- Passport-size colour photograph
- Cancelled cheque of the investor’s registered bank account
Note that this is a list of some mandatory documents that most intermediary agencies or AMCs will require. However, you might also be asked to produce certain additional documents.
As mentioned above, most investment processes are now taking place online. With the introduction of Aadhaar e-KYC, you will not have to face the trouble of carrying all the above-mentioned documents to a KYC verification agency.
This online process consumes less of your time and is very convenient. For paperless e-KYC on UIDAI’s online website, you will have to submit these documents:
- A completely filled online form
- Valid 12-digit Aadhaar number
- Self-attested image of PAN card
- Image of a self-attested cancelled cheque of the investor’s registered bank account
Various KYC Registration Agencies (KRAs) Operating in India
In India, there are five authorised KYC Registration Agencies (KRAs). All of them are responsible for maintaining and holding a database in which the details of every applicant are present. Every verification agency has to follow SEBI guidelines while conducting rigorous checks and then declaring an individual as KYC compliant.
Depending on whether you applied for a KYC using your Aadhaar (online) or PAN (offline) details, you can log on to any of these five agencies’ websites and can check the status of your KYC compliance.
The five KRA agencies are as follows:
- CVL KRA
- CAMS KRA
- DOTEX KRA
- NDML KRA
- Karvy KRA
Also Read- Long Term Capital Gains From Mutual Funds
Final Word
It is crucial for Asset Management Companies to ensure that their investors are genuine and reliable. To be able to do so, it is mandatory for every fund house to conduct KYC checks.
Thus, Know Your Customer is an essential criterion that you must meet before you start investing in mutual funds. Fortunately, once you become KYC compliant, you will not have to indulge in the verification process ever again.
Frequently Asked Questions
Ans: Unfortunately, there is no facility for obtaining an e-KYC without a PAN card. Even though the Aadhaar card is the primary document required for e-KYC, you also have to submit a self-attested image of your PAN card.
Ans: If you have already gone through the KYC verification process and completed registration, it is not necessary to have an e-KYC. However, first-time mutual fund investors looking to verify their KYC details can opt between e-KYC (Aadhaar) and KYC (PAN).
Ans: No, there are no eligibility criteria that you have to meet for KYC registration. However, there are certain documents that you need to possess. Without a PAN card and an Aadhaar card, you are not eligible to apply for KYC verification.
Ans: Yes, you can update your existing KYC details at any time. You will have to visit the official website of any KRA and log in with your credentials. Upon clicking on “Update KYC,” you can make changes and upload the new documents. You will then get a One-time Password on your registered mobile number. After entering the OTP, you can click on submit.
Ans: Video KYC is a new online method that some organisations are using to verify the identity of their users. Through a video call with a KYC officer of the organisation, you can digitally submit and verify your documents.
Want to put your savings into action and kick-start your investment journey 💸 But don’t have time to do research? Invest now with Navi Nifty 50 Index Fund, sit back, and earn from the top 50 companies.
Disclaimer: Mutual Fund investments are subject to market risks, read all scheme-related documents carefully.
This article has been prepared on the basis of internal data, publicly available information and other sources believed to be reliable. The information contained in this article is for general purposes only and not a complete disclosure of every material fact. It should not be construed as investment advice to any party. The article does not warrant the completeness or accuracy of the information and disclaims all liabilities, losses and damages arising out of the use of this information. Readers shall be fully liable/responsible for any decision taken on the basis of this article.
