KYC Status Check - How To Check KYC Status?

Know Your Customer (KYC) is a one-time process that verifies an investor’s identity before making mutual fund investments. KYC status check let's you know whether your identity verification (KYC) process with banks, mutual funds, or financial institutions is complete. KYC status helps you to avoid delay in investments, withdrawals, or account openings.

Know what is KYC, how to check KYC status, documents required for KYC status and its advantages.

What is KYC (Know Your Customer)?

Know Your Customer (KYC) is a verification process carried out by financial institutions to confirm the identity of their customers. It helps reduce the risk of illegal financial activities like money laundering. As part of regulatory compliance, KYC is mandatory before carrying out any financial transaction, especially for opening bank accounts or investing in mutual funds. 

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 primary objective of KYC is ensuring that deposits/investments are made in the name of a real person. It also helps to curb black money. Hence, KYC procedure is something that all mutual fund investors have to adhere to via a KYC Registration Agency (KRA). A SEBI-registered entity, KRA holds investors’ information in a single database that all fund houses and intermediaries have access to. 

CAMS, NSE, and KDMS are a few agencies that most investors are familiar with. SEBI later announced a common Know Your Client process to bring uniformity and consistency across SEBI-registered intermediaries. It became easy for portfolio managers, mutual fund companies, venture capital funds, and stockbrokers, among others to hinder duplication of KYC documents. This makes it easier for investors to comply with it.

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 Aadhaar card, then you can opt for Aadhaar-based KYC. You may request an official from the fund house or agency to visit you to collect the details. Submit a copy of your Aadhaar to the fund house or broker or distributor, and they will map your fingerprints on their scanner and link it to the Aadhaar database. By matching the fingerprint to that in the database, your details will pop up. This means that they have validated your KYC before proceeding with your mutual fund investment.

How can you do KYC with ClearTax?

To do your KYC process manually, an investor needs to visit a KRA for the paperwork or send the documents by post, this can be tedious and will take a minimum of seven working days. However, you may complete your KYC online with ClearTax Invest, which will take only two minutes. The entire investment process can be completed within seven minutes. The company will not use the information you provide for any other purpose.

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 check your KYC status and complete the verification process to start your investment journey with confidence.