In-Person Verification ( IPV ) of KYC Documents

For all mutual fund investors, undergoing an In-Person Verification (IPV) is mandatory as per the norms of the Securities and Exchange Board of India (SEBI). 

Introduction

We often hear about bogus bank accounts, issues due to duplicate PAN, ID, and so on. Biometric locks on Aadhaar could counter this to a large extent. Mutual fund companies, too, face similar issues, and they have come up with something even better – getting the investor to verify in person or IPV. IPV refers to In-Person Verification, and it is a new prerequisite for mutual fund investors. To do this, your AMC will re-validate the KYC info you submitted online. You either need to physically meet the official representative from the fund house or distributor with all the original documents.

In simple words, your passport photo affixed to the corner of the mutual fund form won’t be enough anymore. They need to know that a real person has applied.  

IPV In Detail

The Prevention of Money Laundering Act, 2002 (PMLA), came into effect from 1 July 2005. This Act was designed to ensure that no one was able to use investment tools to park their ill-gained wealth. Soon after the Act coming into effect, the SEBI (Securities and Exchange Board of India) mandated that all intermediaries helping their clients with investments (including mutual funds), should adopt the Know your Customer (KYC) policy. Along with this, it was also necessary for intermediaries to formulate and implement policies vis-a-vis the guidelines on anti-money laundering measures.

Since 1 January 2011, KYC compliance has been made mandatory for all investors. This is irrespective of the amount invested and includes the following transactions:

1. New / Additional Purchases
2. Switching Transactions
3. New registrations for SIP/ STP/ Flex STP/ FlexIndex/ DTP
4. Any SIP/STP/trigger-related products launched after the act coming into effect

As a process in which a Depository Participant verifies and validates your documents, SEBI has mandated all investors to undergo IPV. If you are planning to make investments and open a Demat account or trading account, this is the first step. Now every AMC and distributor insists on personal verification before activating investment account with them. This rule principally applies to NRIs, People of Indian Origin and Sailors, regardless of their current place of residence. Many fund houses allow this verification via video chat or recording as well.

How to Get Your IPV Done

To carry out IPV, the investors must produce the original copy of ID and residential proof they have submitted electronically to the fund house. Earlier, the investors needed to appear in person at the office, or somebody would visit the investors at their workplace or home. But now, the process is more straightforward as you can do a live authentication via video conferencing (Skype) at a pre-agreed time. For this, you must have a fast internet connection. The officer might ask you questions regarding your documents. If they find the answers contradictory or mismatch of documents, they can cancel your application.

IPV Authorization

Only the following entities have the authorisation to carry out IPV. You can visit the nearest office in person with the required documents.

1. KYC registration agency (KRA)
2. The AMC
3. Mutual fund agent
4. Mutual fund distributor
5. MF’s registrar
6. Transfer agent like CAMS or Karvy Computer Share Private Limited

The fund house will deem your KYC complete only after the In-Person Verification. You can invest in other mutual funds with this as you need to do the IPV only once.

Why Add IPV to Regular eKYC?

e-KYC (Know Your Customer) is a value-added feature that many fund houses offer today, to make the application process seamless. Investors can access it and upload the necessary documents from the comfort of their home or office. As mentioned above, only SEBI-approved KRAs like CVL and CAMS may complete e-KYC.

Most of these agencies have launched apps to do instant authentication, either using biometrics or OTP. There is an upper cap of Rs.50,000 per investor per mutual fund for OTP verification.

Who Needs to Be KYC Compliant?

Since the IPV is a part of the KYC process, let’s take a look at the categories of investors who need to be KYC compliant. The list includes:

1. Any individual(s) or non-individual(s) making an investment
2. Guardians investing on behalf of minors
3. Power of Attorney (PoA) holder(s), when making investments through PoA

Individuals who become investors due to an operation of law, e.g., transmission of units upon the death of the original investor. In this case, the claimant/person(s) will need to be KYC compliant before such transfers can happen.

Rules Set by SEBI for IPV

1. Conducting IPV of its clients is a mandatory process for all intermediaries
2. The intermediary is responsible for collecting and maintaining records of all customer details that are confidential
3. Only the IPV performed by a SEBI-approved intermediary will be taken into consideration
4. Once a KRA record is updated, all other intermediaries can access the details, and this eliminates the need for multiple verifications and data duplication

Frequently Asked Questions

As a tax-paying citizen, Section 80C of the Indian Tax Act allows you some breather – a deduction of up to 150,000 from your total annual income.

How to check your KYC status online?

You may consider completing your KYC (Know Your Customer) before investing in mutual funds. You may have to submit documents such as PAN as an identity proof and your passport/driving license/Aadhaar/Voter ID as an address proof. You must submit self-attested copies of all these documents along with a couple of passport size photographs and show the originals for verification during IPV (In-Person Verification).

Complete KYC Online: You could complete the KYC online by visiting the website of a mutual fund house or KRA (KYC Registration Agency). You may consider filling up your details in the KYC form. You would be asked to upload self-attested copies of identity and address proof along with a passport size photograph. You must display originals for verification during IPV.

Check KYC Online: You may verify KYC status by visiting the website of the KRA. You will have to enter your PAN details to check the status of KYC.

How to check bank account KYC status?

You may consider visiting the website of your bank. You may find the link ‘Check KYC status’. You then enter the bank account number and the CAPTCHA to check the KYC status of your bank account. You may also log in to your internet banking account and check the bank account KYC status.

How to update KYC online?

You may want to change your name or permanent address in the digital KYC records. You would have to visit the eKYC portal of the KRA and login with your credentials. You then click on the link ‘‘Update KYC’. You then fill up the new details and upload the scanned copies of the relevant documents. You will have to complete the verification using the OTP on your registered mobile number. You then click on submit to complete the updation of KYC online.

What is KYC status?

KYC also called Know Your Customer is a method of identifying and verifying customers of a bank or investors in stocks, mutual funds and other investments. It is compulsory as per RBI norms for customers to complete KYC before accessing services or making transactions at banks.

You may consider KYC to be a protection against money laundering. It signifies that you are compliant with the Prevention of Money Laundering Act, 2002. You may find KYC status to be KYC Registered, KYC Under Process, KYC On-Hold, KYC Rejected and Not Available or your KYC record is not available with KRAs.

How to check director KYC status?

All current directors must update details as per the Income Tax Database. You may visit the MCA Portal to access the website mca.gov.in. You may enter the DIN (Director Identification Number) and click on submit. You then enter the PAN (Director) and click on submit to check director KYC status.

How to check KYC DIN status?

You may visit the MCA Portal. You then click on verify DIN PAN details of the Director and enter the DIN. You then press submit to check the KYC DIN status.

How to check KYC status of PAN Card?

You may consider visiting the website of CDSL (Central Depository Services Limited) and entering your PAN. If your KYC verification is complete you will see the updated status as MF-Verified by CVLMF. However, if your KYC status has not been verified you get to see status ‘Pending’. You may consider taking a print out of the page if necessary.

How to check the KYC status of mutual funds?

You may check the status of KYC at the website of the KRA (KYC Registration Agency). You then enter your PAN and the Captcha code to check the KYC status of mutual funds. However, if you have completed the KYC status without PAN you may enter your name, DOB and PAN-exempt category along with Captcha code to check the KYC status of mutual funds.

After your details are validated the portal will show you the date of initial KYC registration, the date of modification of your KYC records and the checkbox of IPV verification. You get to know the status of IPV verification through the checkbox.

How to check the KYC status of EPF?

You may check the KYC status of EPF using your UAN. You may visit the member e-sewa portal and login to your account using your credentials. You then click on the ‘View’ tab and the ‘UAN Card’ option.

The UAN Card will display ‘Yes’ in the KYC information row if your KYC details are updated in the EPF account.

How to check Aadhaar eKYC status?

You may visit the website of the financial entity which offers Aadhaar based KYC and login with your credentials. You enter your Aadhaar number to check the Aadhaar eKYC status.

How to verify KYC status in MCA?

1. You may consider visiting the MCA Portal. You then navigate to MCA Services> DIN Services> Verify DIN.
2. You could enter the DIN of the Director and click on the Submit button.
3. You may enter the DIN in the box below verify DIN/DPIN-PAN details of the Director under DIN Services.
4. You then enter the PAN of the Director and click on the ‘Submit’ button.
5. You would see the name of the Director displayed as per the DIN database and the message, DIN details are matching with the Income Tax PAN database.

How to check CVL KYC status?

You may verify your KYC status by visiting the CVL KYC website and clicking on the button ‘Inquire on KYC’ after logging with your credentials. You will need to enter the Aadhaar Number to check the present status of your Aadhaar Based KYC Registration. You may consider repeating the same procedure for PAN-based registration. However, you may enter the PAN number instead of Aadhaar through this method.

How to check UAN KYC status?

You may consider checking the EPF KYC status using your UAN card. You must visit the e-Sewa Portal and login to your account with the right credentials. You then navigate to the ‘View’ tab and click on the ‘UAN card’ option.

You will find the UAN Card showing ‘Yes’ before the KYC information row if all your KYC details have been updated in the EPF account.

How to check Central KYC Status?

You may visit the KRA website which offers the facility to check the CKYC status. You may consider entering your PAN details. You enter the Captcha Code to check the Central KYC Status.

What is CKYC?

CKYC or Central KYC is a Government initiative which brings the KYC process of all entities in the financial sector under a single window. It is managed by CERSAI or the Central Registry of Securitisation Asset Reconstruction and Security Interest of India. You will have to complete your KYC only once before you interact with different entities across the financial sector

What is the CKYC number?

You have the CKYC number as a 14-digit KYC identification number or KIN which is linked with your ID proof. You may use the CKYC number to invest in financial products such as mutual funds. Stocks, insurance products and so on. Your CKYC number is allotted by the CERSAI after you complete the CKYC formalities.

How to find CKYC number?

You may check your CKYC number through any KRA or financial services company website. You may log on to the KRA or a financial services company website and enter your PAN Number. You then enter the security code displayed on the screen to get your CKYC number.

How to complete CKYC online?

1. You may visit the website of a KRA and register yourself
2. You have to submit scanned copies of documents such as self-attested identity and address proof such as PAN Card, Passport or Voter ID
3. You have to submit scanned copies of documents such as self-attested identity and address proof such as PAN Card, Passport or Voter ID
4. You will have to complete the IPV (In-Person Verification) over a video call
5. You must digitally sign the documents and activate your CKYC account.

What is CKYC identifier?

CKYC has a unique KYC identifier which is a 14-digit KYC identification number. You may use the CKYC identifier to invest in financial products. You may find your KYC documents and data stored in a secure electronic format.

How do I find my CKYC number?

You must log on to the KRA website with requisite credentials and enter your PAN Number. You enter the Captcha code displayed on the screen to find your CKYC number (KIN).

What is the CKYC number in the bank?

CKYC or Central Know Your Customer Registry is the centralised repository of KYC documents of investors availing services from entities in the financial sector. CKYC helps you reduce the burden of submitting documents for KYC every time you invest in financial products with a financial entity. If you have opened your bank account with a bank you may use the 14-digit KYC identification number to invest in financial products with other financial institutions.

How to get CKYC ID?

1. You may visit the KRA website and download the CKYC application form.
2. You fill personal information such as name, gender, marital status and occupation in the CKYC application form.
3. You may have to finish the IPV (In-Person Verification) through a video call
4. You will have to digitally sign the documents to activate your CKYC account and get your 14-digit CKYC number (KIN).

What is the CKYC reference number?

You have the 14-digit KYC Identification Number or KIN as the CKYC reference number. You must use the CKYC reference number while investing in financial products with financial entities.

How to apply for CKYC online?

You must log on to the website of the KRA or financial entity and fill the CKYC application form. You may upload the scanned copies of self-attested identity and address proof along with passport size photographs at the KRA. You may complete the IPV (In-Person Verification) over a video call. You then digitally sign the documents and activate your CKYC account.

What is supplementary CKYC?

Investors who have to comply with additional KYC requirements must do the supplementary CKYC. You may find the supplementary CKYC form on the website of the mutual fund house or at the investor service centres of asset management companies.

You have to fill additional information such as information on the country, occupation, place of birth, net worth, income details, state if you are a politically exposed person, tax identification number and tax residency status.

Where to submit CKYC form?

You may approach a mutual fund distributor or even a registrar to complete your CKYC. You could also submit the filled CKYC application form at the branch of the mutual fund house. You may consider completing CKYC online by visiting the website of a KRA or financial entity.
Submit the CKYC form online along with photocopies of self-attested documents such as PAN Card, passport/driving license/Voters identification card as identity and address proof. You will have to submit a passport size photograph and get your self-attested documents verified against the originals through IPV (In-Person Verification).

What is the difference between KYC and CKYC?

To prevent identity theft, money laundering and fraud, the RBI had asked banks and financial institutions to have a policy framework to know customers before opening an account. It involved verifying the identity and permanent address of customers by submitting documents as relevant proof. You may submit self-attested copies of PAN Card, passport, electricity and telephone bill, voter’s ID card, ration card as identity and address proof to comply with KYC norms.

However, you had to complete your KYC with different financial institutions. For example, you want to invest in mutual funds. You would have to complete your KYC with the mutual fund house even if you had done your KYC while opening your bank account.

CKYC or the Central KYC helps investors complete KYC only once, reducing the burden of interacting with different financial institutions. You would find CKYC managed by CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest of India). CKYC reduces the burden of producing your KYC documents and getting them verified each time you deal with a financial institution. You may do your CKYC with a bank, stock broker, mutual fund house or an insurance company.

How to update CKYC?

1. You may update your CKYC through the following steps.
2. You may visit the KRA website and download the ‘KYC Details Change’ form
3. You must fill up the required information you want to update and submit it to the intermediary with photocopies of the required documents. Intermediary may be your stock broker, bank or mutual fund house.
4. The intermediary will upload your data to the system of the KRA (KYC Registration Agency)
5. You may check your CKYC status by visiting the website of the KRA.

How to download CKYC document?

You may visit the website of the KRA or financial entity and download the CKYC application form.

What is the use of CKYC number?

CKYC has a unique KYC identifier. It is a 14-digit KYC identification number or KIN which is linked to your identity proof. Your KYC data and documents are stored digitally in a secure manner. You may use your CKYC number while investing in financial products.

What are eKYC and CKYC?790

eKYC also called Aadhaar-based eKYC helps verify your identity electronically through Aadhaar-based authentication. The service provider would access your Aadhaar details such as name, gender, permanent address, date of birth, email id and mobile number from the database of the UIDAI (Unique Identification Authority of India).

You would find Aadhaar-based KYC offering identity and address proof instantly without the need for IPV (In-Person Verification). However, there is a cap of Rs 50,000 per mutual fund house per year on OTP based Aadhaar eKYC. You may consider completing your CKYC which involves IPV ((In-Person Verification) if you want to invest a higher amount.

CKYC also called Central Know Your Customer is an initiative of the Government of India where the CKYC serves as a Centralised repository of KYC records. CKYC or the Central KYC helps you complete KYC only once. It includes the FATCA declaration and you don’t have to declare the same at different levels of investment.

How to apply for the CKYC number?

You must visit the website of the KRA (KYC Registration Agency) and fill the CKYC form. You then upload the self-attested copies of identity and address proof such as PAN Card, passport, voter ID and driving license along with passport size photographs. You may complete the IPV (In-Person Verification) through a video call. You must digitally sign the documents to activate your CKYC account and get your 14-digit CKYC number.

What is CKYC in a mutual fund?

You may consider completing your CKYC if you want to invest in mutual funds. You don’t have to go through multiple KYC submission processes with different financial entities after you complete your CKYC.

You must visit the KRA (KYC Registration Agency) website and fill the CKYC form. You then upload your self-attested PAN Card as identity proof and self-attested passport, driving license, Voter ID as address proof along with scanned passport size photographs.

You could complete the IPV (In-Person Verification) through a video call. You must digitally sign the documents to activate your CKYC account and get your 14-digit CKYC number.

How to check CKYC status?

1. You must visit the website of a KRA (KYC Registration Agency)
2. You enter your PAN details and the Captcha code
3. You would find your KYC registered status.

How to get CKYC identifier number?

1. You may visit the website of a KRA (KYC Registration Agency)
2. You enter your PAN details and the relevant Captcha code
3. You would find your KYC registered status and also the KIN (14-digit KYC identification number).