Know your client (KYC) verification is a mandatory requirement for mutual fund investments in India. KYC essentially is a record of the investor’s identity and address. If you are new to mutual funds, you must submit self-attested copies of -
- your identity proof (either one of passport, driving license, PAN card, Aadhaar card, etc.),
- address proof (either one of passport, Aadhaar card, property tax bill, electricity bill, etc.) and
- PAN card which is mandatory,
- duly filled KYC form with your photograph affixed on it.
Where to submit the form and copies of documents?
You can submit the form to a mutual fund distributor or the Asset Management Company (AMC) or Registrar and Transfer Agency (CAMS, Karvy, etc.) for in-person verification (IPV) which is mandatory. Whoever is doing your IPV, will verify your KYC from based on the documents submitted by you.
Note - W.E.F 1st January 2018, AADHAR has become mandatory for mutual fund investments in India. Therefore, submitting an AADHAR Card copy with your KYC form is mandatory.
Steps to check your Mutual Funds KYC status online
Once you have submitted the necessary KYC documents to the AMC or RTA you can check your KYC status online on the websites of the KYC Registration Agencies (KRA) like CAMS, Karvy, CDSL, NDML, NSE, etc.
You can check your KYC status on websites of any KRA, irrespective of where you submitted your KYC documents.
Below are the steps to be followed for checking KYC status on the CDSL website.
- Copy and paste the link https://www.karvykra.com/upansearchglobalwithpanexempt.aspx on your web browser.
- Enter your Permanent Account Number
- Enter the Captcha Code you see on the screen and click submit
The screen will show when the KRA was submitted, the KYC status (registered, on hold, rejected, etc.) and the KYC hold reason (if any).
If you are an existing mutual fund investor but you have not made any mutual fund transaction for a long time, the AMC may reject your transactions, if your KYC is “On Hold” status. Therefore, if you have not made any mutual fund transaction for a long time you should check your mutual funds KYC status online.
What different KYC status means?
- KYC registered means that your identity and address records are registered with the KRA. No further action is required on your part and you can make mutual fund transactions.
- Under process means that the KYC documents have been received and the verification process is underway. You should check the KYC status again after a few days to see if your KYC is registered.
- On hold means that the KYC has been held due to a discrepancy in KYC documents. The KRA will mention the document where discrepancy has been found. You will need to submit the correct documents.
- Not available means the KYC record for the PAN is not available with any KRA
- KYC registered – Incomplete / Existing / Old KYC Record means that the KYC record is incomplete and needs to be updated for missing information. You have to submit fresh KYC documents to AMC or RTA
- Under Process - Incomplete / Existing / Old KYC Record means that the KYC is incomplete and updated with missing information. You have to submit fresh KYC documents to AMC or RTA
- KYC Rejected - Incomplete / Existing / Old KYC Record means that KRA has rejected the KYC record after verification of PAN with other KRAs if such PAN is available with other KRA. You have to submit fresh KYC documents to AMC or RTA.
People Often Ask
- What is KYC status?
KYC is a process of identification and verification of a consumer by the financial institution and banks. The status signifies if or not your KYC process complete or not. - How can I update my KYC in mutual fund?
- Download the latest KYC form and update the missing information that is mentioned in Section B of the form.
- One can get this form from any mutual fund office or KRA office.
- Submit the completed form, along with ID proof, at any of the investor service centres or collection centres.
- Is KYC necessary for mutual funds?
Yes, KYC is a must for mutual funds and should be completed before investing in mutual funds. - How do you know KYC is done?
You need to visit the official site of CDSL and enter your PAN card number. If your KYC status is updated to verified then the status will be displayed as ‘MF - Verified by CVLMF'. If your KYC has not been verified then, the status 'Pending' - How long does it take to get KYC verified for mutual funds?
KYC verification takes a maximum of 2-3 business days for mutual funds.
Conclusion
As you can see it is very easy to check your KYC online. However, if for any reason your KYC is not showing as registered or you know the reason for the KYC on hold, you can then submit the necessary pending documents and get your mutual fund KYC registered. Alternatively, you should contact your financial advisor or the AMC or the RTA to whom you had submitted your mutual fund KYC application.