Know Your Customer, or KYC, is a mandatory norm where investors submit their proof of identity, address, and sometimes income, when opening a demat account to invest in mutual funds. An incomplete KYC will automatically reject your application or hold your transaction, with a prompt to complete your pending verification.
An updated KYC verifies your identity and investment, as well as reduces the risks of fraudulent activities. Even asset management companies (AMCs) have to mandatorily follow the KYC norm as per the Securities and Exchange Board of India (SEBI) rule, which will help them identify and prevent money laundering.
How to check KYC status
You can check your KYC status by directly visiting the AMC’s official website, broker portal with which you have opened a demat account. Simply visit their official website, enter your PAN card details, verify your account with OTP, you will see the status of your KYC displayed either as ‘Verified’, ‘Pending’, ‘On Hold’, or ‘Rejected’. If it shows anything other than ‘Verified’, you’ll need to update your KYC or re-submit documents as required.
There are also third-party KYC Registration Agencies (KRAs) like CVL-KRA, CAMS KRA, NSDL KRA, CDSL KRA, among others that help investors to check their KYC status, among other services. KRAs are helpful, especially when investors have accounts across multiple AMCs and need to update the KYC requirements at once.
How to update KYC online
Once you enter the KRA’s website, you will be prompted to upload your documents like Aadhaar, PAN card, and current passport-sized photographs. Some portals even allow eKYC where verification is done using Aadhaar-based OTP, making the process simpler and faster. It usually takes five to seven days for the KYC update process to complete. You can check the status of your KYC from time to time.
When offline verification may still be required
Whenever there’s a mismatch on details submitted by you during the KYC process, you may be asked to go through In-Person Verification (IPV). A few brokers offer IPV service via video call or doorstep facility. Make sure the details on your scanned copies of your documents are clear, and also link your mobile number with your Aadhaar number for OTP verification. Avoid last-minute hassles by ensuring your name, date of birth, address, and other details on your documents match the records you enter on KRA’s website.
Is your KYC kept on hold?
Once your KYC is updated, it is advised to check the status from time to time, especially in the event of an address change or document upgrade. When the documents you submit as proof are out of sync with the details you gave to the AMC, your KYC will be kept on hold until you update the documents. Also, ensure that your mobile number and email id are active to get important prompts from brokerage companies or fund houses for KYC requirements that may need your immediate attention.
Be KYC compliant
Regulators are always keen on maintaining updated records of mutual fund investors on their online database. When your demat or mutual fund transactions suddenly get held up, the AMCs usually send you a reminder on your registered mobile number and email id. Follow the process above whenever you need to update or check the status of your KYC, it's faster, convenient, and you will get uninterrupted access to your account.
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