Guide to Know What is KYC Process

KYC (Know Your Customer) is a tool that helps to avoid money laundering problems. Any financial institution can use this information to identify customers and monitor any illegal activities.

Let’s take a closer look at KYC.

KYC is required for those who invest for the first time in mutual funds. They must meet all requirements of KYC norms. This is why KYC is only required once. The Prevention of Money Laundering Act (PMLA) is responsible for all KYC norms. It checks whether the funds are legal and stops black money from flowing. This can be done by KYC registration agencies such as CAMS and NSE.

This process is free and can be completed in three ways. Let’s first look at the KYC documents and the Know Your Client application forms. You must also attach a passport-sized photograph.

  1. For ID proof: Passport copy, Driving License Copy, Passport Copy, Voter ID or Aadhaar Card.
  2. Address proof: Most recent landline or mobile phone bill, electricity bill or passport copy. Recent bank statement, ration card or Voter ID. Rental agreement. Driving License.
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Physical KYC Process

  • Download the KYC form, which can be found on the websites of mutual funds houses or registrars and transfer agents like Karvy Computershare and Association of Mutual Funds of India.
  • The form can be downloaded by clicking the link below. http://portal.amfiindia.com/spages/CKYC-KRA-KYC-FormforIndividuals.pdf.
  • You will need to download the form and submit it along with the required documents at the respective fund house, registrar, or transfer agent office.

How do I get KYC completed and invest in mutual funds online?

You can do it online if you don’t wish to go through the process physically. Your Aadhaar number is required for e-KYC. Once you have chosen the fund house that you wish to invest in, go to the website of the fund house and proceed with eKYC according Adhaar. Fill in the PAN information and choose the option that you aren’t KYC-compliant. You will also need to enter your mobile number, which you have received in Adhaar details. You will now receive an OTP (one-time password) in your mobile phone. The process is completed once you have entered the OTP.

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The above method only allows for a yearly investment of Rs50,000 per house. You can opt for a physical KYC or a biometric KYC to make more investment. You can apply for the biometric device. This involves scanning your thumb which is then linked to Adhaar data. After you have entered some details and matched your fingerprints, a picture will be displayed in your phone. This means that your KYC process was successful, and you are now able to invest.