What is KYC?
KYC stands for Know Your Customer. It means that an investor is required to submit his/her identity details with the mutual fund companies.
According to the Prevention of Money laundering Act, 2002 (PMLA), Asset Management Companies (AMCs) are required to formulate rules and implement a customer identification programme.
I want to invest in mutual funds. Is KYC mandatory?
Yes, to invest in mutual funds, complying with KYC norms is mandatory.
How can I get my KYC done?
There are 3 ways:
1. Physical KYC
3. Biometric KYC
1. You can download the form from http://portal.amfiindia.com/spages/CKYC-KRA-KYC-FormforIndividuals.pdf. The form is also available with all the AMCs or the RTA (Registered Transfer Agent) like CAMS, Karvy, or Sundaram BNP Paribas Fund Services and Franklin Templeton, you are dealing with.
2. Fill up the form, and provide the self-attested copies of the following documents:
3. You also need to carry originals for In-person verification.
4. You can submit the form at the AMC with which you are making an investment or the RTA. On submission of the form, you will receive the KYC acknowledgement and your KYC will be done in 1-2 working days.
Pre-requisite for OTP-based KYC: The mobile number must be linked with Aadhaar.
1. Log into the KRA (KYC Registration Agency) website. Here is a link of a few websites for OTP-based KYC:
2. Enter the following details:
PAN number, email id, name of AMC, bank name, date of birth, mode of holding and tax status.
3. Once you enter these details, your KYC compliance status will be displayed.
4. If you are not KYC compliant, you will be asked to add your Aadhaar number and registered mobile number.
5. Aadhaar-based Authentication: After punching the Aadhaar number and registered mobile number, the Aadhaar authentication screen will be displayed.
6. You will receive OTP on your registered mobile number. You will have to enter the OTP on the screen along with pin code.
7. After Aadhaar authentication, you will be required to upload a self-attested copy of e-Aadhaar. Then you will have to select/tick the consent declaration displayed on the screen.
Your Aadhaar and registered mobile number will be verified with the Aadhaar database of the UIDAI. Upon successful verification, the screen will display that you are OTP-based KYC verified and can start transacting in mutual funds.
1. It is the simplest way to get your KYC done.
2. A finger print scanning device will be plugged into the phone or tab of the agent/mutual fund distributor/AMC you are dealing with.
3. The KYC app will automatically detect the plugged-in device and ask for a few details like PAN Card number, Aadhaar card number, Mother’s name etc.
4. You will then scan your finger print via the device and a validation will be carried out by UIDAI.
5. Post this validation, a few more details will be captured.
That’s it. Your data is submitted to the KYC authorities for completion of the process and you instantly become KYC compliant.
How can I check my KYC status?
Visit www.cvlkra.com, click on the KYC enquiry tab and enter your PAN Number—your KYC status will be displayed and if you do not see any information, it means that you are not KYC compliant yet.
Visit www.camskra.com, enter your Aadhaar number— your KYC status will be displayed.
Do I need to pay for KYC?
No, the KYC process is free for the investors.
Do I need to get KYC done every time I invest?
No, KYC is a one-time exercise.
About the Author:
Nivesh.com is a mass market mutual funds investment platform.
Mutual funds were set-up to provide an opportunity to ordinary investors to invest in financial assets, which they could not do otherwise on their own. However, they lack a proper vehicle to initiate their journey. In the spirit of financial inclusion, the platform aims to be such a vehicle that will not only help them get started but also support them along the way.
Nivesh.com is a paperless experience for the investors. The platform simplifies the process by categorizing funds as per broad investment objectives, and further curating schemes to provide a shortlist. The aim is to take away the complexity while ensuring objective investment process. After initial account creation, investors can transact in mutual funds in few simple steps. Post transaction, the platform helps in tracking the portfolio performance with timely alerts and notifications.