New KYC rules for mutual fund investors: A complete guide

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If you have invested in mutual funds and are confused about the new KYC (Know You Customer) rules that have come into effect, here is a quick guide to help you out.

1. Find Out Your Status: Check the status of your KYC first. You can do this by logging into any KYC Registration Agency’ (KRA) website or mobile application such as CAMS, Karvy, CVL and NDML. The KYC status has been classified under three levels—KYC status on hold, validated and registered or verified.

2. KYC Validated: Investors with "KYC Validated" status are not required to do anything. They can easily continue to do all the transactions.

3. KYC Verified: In case your KYC status says verified, it would see no impact on your current investments. However, in case you want to make any new investments, you would need to resubmit your KYC documents. If your KYC was done using Aadhaar, there is no need to repeat the KYC process for fresh transactions. If your new KYC was done through non-Aadhaar documents, you need to do a fresh KYC verification each time you apply for a new scheme.

4. KYC On-Hold: Investors whose KYC status shows on-hold, it means that all your financial transactions, including in existing schemes, are restricted and no new transaction can be done till you do your KYC. You need to do this by submitting any of the officially valid documents (OVDs) including Aadhaar, Passport and Voter ID card at the nearest branch of the AMC (Asset Management Company) or KRA.

5. How To Do Your KYC: You can find your KYC status by logging in to any of the mutual fund's website and visit the page 'Modify/Update KYC'. To update your KYC, follow the steps by entering your details and uploading documents as required. Once your email ID/mobile number are validated and details entered/uploaded are validated by the KRAs, the KYC status will change to 'Validated'."

6. For NRIs: The new KYC process has made it tougher for Non-Resident Indians (NRIs) to invest in mutual funds. NRI and OCIs (Overseas Citizens) with foreign mobile numbers are now exempted from the Aadhaar-linked OTP verification process if their PAN reflects their foreign residential status.

7. How to do KYC Offline: Download the KYC form from any of the AMC, RTA or AMFI websites, and submit it to any of your any AMC or RTA office. Along with the duly-filled form, you need to also submit the required documents, such as PAN, Aadhaar, etc.
While the process of redoing your KYC seems cumbersome, it is a one-time effort to ensure a smooth transaction in the future.