KYC Status Check - How To Check KYC Status?

Know Your Customer (KYC) is a one-time verification process that verifies an investor’s identity before they make a mutual fund or other financial investments. KYC status check confirms if your verification is complete, and it ensures smooth investments, withdrawals, and account openings.

Key Highlights

• KYC verification is handled by SEBI-registered KYC Registration Agencies (KRAs).
• KYC can be done through Aadhar-based biometric, or by downloading KYC application form from the CDSL Ventures website.
• Investors must submit an ID proof, a proof of address, a passport photo, and a Know Your Client application form. 

What is KYC (Know Your Customer)?

KYC or Know Your Customer, is a process by which the financial institutions obtain the identity and address of the customers. As part of regulatory compliance, KYC is mandatory before carrying out any financial transaction, especially for opening bank accounts or investing in mutual funds. 

This ensures that the institution's services are not misused and safeguards against fraudulent financial activities.

How to Check KYC Status?

You can visit the official website of a SEBI-registered KYC Registration Agency (KRA) to complete your KYC status check. These agencies maintain a central database of investor KYC records. Enter your PAN to check if you are KYC compliant or not. 

Popular KRA websites include CVL KRA (CDSL Ventures Limited), NSE KRA, and CAMS KRA. You can easily check your KYC status online by following the steps below:

• Visit the website of a SEBI-registered KYC registration agency (KRA).
• Click on the “KYC inquiry” or “check KYC status” link.
• Enter your PAN number and submit.

Your KYC status will be displayed on the screen as one of the following:

• Verified
• On hold
• Rejected
• Pending

If your KYC is verified, you can start investing in mutual funds immediately. If it is on hold or rejected, you may need to re-submit the documents or provide additional information.

What are the Documents Required for KYC?

Investors need to submit the following documents along with their Know Your Client application form and a passport size photograph.

• ID Proof: PAN Card, Driving License, Passport copy, Voter ID, Aadhaar Card, or bank photo passbook.
• Proof of Address: Recent landline or mobile bill, electricity bill, passport copy, recent Demat account statement, latest bank passbook, ration card, Voter ID, rental agreement, Driving License, or Aadhaar card.

Why is KYC Necessary for Mutual Fund Investments?

The main purpose of KYC (Know Your Customer) is to make sure that investments and deposits are made in the name of a real person. It also prevents financial fraud. That's why all mutual fund investors need to complete the KYC process through a KYC Registration Agency (KRA). These agencies, registered with SEBI, store your details in a central database that can be accessed by fund houses and intermediaries.

Most investors are familiar with KRAs like CAMS, NSE, and KDMS. To make the process smoother, SEBI introduced a standardized KYC system, ensuring consistency across all SEBI-registered intermediaries. This has made it easier for financial firms, like mutual funds, stockbrokers, and portfolio managers, to avoid duplicating KYC documents, making the whole process much simpler for you.

What are the Available KYC Procedures?

The mutual fund industry has nominated and authorised CDSL Ventures Limited to conduct the KYC procedure. You can complete the process, either offline or online.

Offline

• Download the KYC application form from the CDSL Ventures website and fill in the details.
• Sign and submit a physical copy of the form to the specified authorities or intermediaries through whom you wish to invest in mutual funds.
• Attach the attested photocopies of ID proof, residence proof, and a passport size photo with the form.

Aadhar-Based Biometric 

If you have an Aadhaar card, you can opt for Aadhaar-based KYC (Know Your Customer) verification for your mutual fund investment. You can request a representative from the fund house, agency, or distributor to visit you and collect the necessary details. 

You'll need to provide a copy of your Aadhaar card, and then the official will scan your fingerprints. Once the fingerprints are matched, your details will be retrieved automatically. This completes the KYC process and allows you to proceed with your investment.

How can you Complete KYC with ClearTax?

To complete your KYC manually, you would need to visit a KRA office or send the documents by post, a process that can be time-consuming and take at least seven working days.

However, with ClearTax Invest, you can finish your KYC online in just two minutes, and complete the entire investment process in under seven minutes. The information you provide is completely secure and will only be used KYC purposes.

Advantages of being KYC Compliant

Being KYC compliant offers several benefits that make your mutual fund investment journey more secure:

• Once verified, you don’t need to repeat the KYC process for future investments
• You can invest in any mutual fund scheme across any asset management company in India
• The process ensures compliance with SEBI regulations and prevents fraudulent activity
• Once compliant, you can start investing in mutual funds within seconds through online platforms
• It is a one-time verification process required by all mutual fund houses

Completing your KYC is the first step toward investing in mutual funds in India. It ensures regulatory compliance and protects against financial fraud. With both online and offline options available, getting KYC compliant is now quicker and easier than ever. Make sure to do KYC status check and complete the verification process to start your investment journey with confidence.