By Nivesh Gyan 18 SeptemberCategory: General
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.
Yes, to invest in mutual funds, complying with KYC norms is mandatory.
There are 3 ways:
|Physical KYC||OTP-based KYC||Biometric KYC|
|Available for individual as well as non-individual investors||Available for only individual investors with single mode of holding||Available for only individual investors with single mode of holding|
|No limit on the investment value||Sebi currently permits investment of Rs 50,000 each financial year per mutual fund||No limit on the investment value|
|Takes 1-2 working days||Instant||Instant|
Pre-requisite for OTP-based KYC: The mobile number must be linked with Aadhaar.
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.
That’s it. Your data is submitted to the KYC authorities for completion of the process and you instantly become KYC compliant.
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.
No, the KYC process is free for the investors.
No, KYC is a one-time exercise.