How To Complete KYC For Your Mutual Fund: Online And Offline Methods
Many mutual fund investors are grappling with the new KYC ( Know Your Client ) rules that came into effect on April 1, 2024. According to these rules, the KYC status of an individual is divided into three categories: validated, verified, and on-hold.
KYC Validated Status
Investors with "KYC Validated" status do not need to take any action. They can continue their transactions seamlessly.
KYC Verified or On-Hold Status
However, those with a "verified" or "on-hold" KYC status must redo the KYC process (re-KYC) using PAN and Aadhaar to attain the KYC validated status. Investors with "KYC Verified" status can maintain their existing investments but must resubmit KYC documents for new investments. Those with an "on-hold" status cannot proceed with any transactions until their KYC is updated.
According to CAMS, a registrar and transfer agent for mutual fund houses, "The KYC status can be validated only when the documents given as proof of identity and proof of address are validated by the issuing authority concerned." Currently, only PAN and Aadhaar can be validated by the issuing source.
A press release dated April 25, 2024, from the five KYC registration agencies (KRAs) states, "All KRAs put together hold KYC records of 10.83 crore. Out of which, 73% of KYC records are under 'KYC validated' status, 15% of KYC records under 'KYC Registered' status and balance 12% are under 'KYC On-Hold' status."
To assist mutual fund investors with the new KYC rules, the Association of Mutual Funds in India ( AMFI ) has provided guidelines for completing KYC both online and offline.
How to Do KYC Online for Investments
Investors can complete their KYC online through any mutual fund's website. According to AMFI, "The investor can log on to any of the Mutual Fund's website and visit the page of 'Modify/Update KYC' and follow the steps such as entering his/her details and uploading documents as required. Once the Email ID/Mobile number are validated and also the details entered/uploaded are validated by the KRAs with official data base (such as Income Tax database on PAN, Aadhaar XML/DigiLocer/M-Aadhaar), the KYC status will change to 'Validated'."
Here is an example of how to do KYC online on HDFC Mutual Fund's website:
1. Visit HDFC KYC Verification.
2. Enter the PAN and date of birth.
3. You will be redirected to another website to complete the KYC. Keep the following documents handy:
5. Your current email address and mobile number will be displayed. Click continue.
6. Upload PAN as proof of identity.
7. You will be redirected to DigiLocker to complete the KYC.
8. Enter your Aadhaar number and the captcha code. A one-time password (OTP) will be sent to your registered mobile number and email address. Enter the OTP. Remember, the OTP is valid for 10 minutes. Once verified, enter a 6-digit PIN on the DigiLocker website.
9. Provide consent to the KRA agency to access your information for verification.
Once consent is given, your KYC process will be completed. The KRA agency will take 10-15 days to update the status to KYC Validated.
How to Do KYC Offline for Investments
For those unable to complete KYC online, AMFI has provided an offline method. According to the association, "Investors can download the KYC Form from any of the AMC's, RTA's or AMFI websites and submit it to any of their AMC's or RTA's offices." Along with the duly-filled form, investors must submit required documents such as PAN, Aadhaar, and others.
KYC Validated Status
Investors with "KYC Validated" status do not need to take any action. They can continue their transactions seamlessly.
KYC Verified or On-Hold Status
However, those with a "verified" or "on-hold" KYC status must redo the KYC process (re-KYC) using PAN and Aadhaar to attain the KYC validated status. Investors with "KYC Verified" status can maintain their existing investments but must resubmit KYC documents for new investments. Those with an "on-hold" status cannot proceed with any transactions until their KYC is updated.
According to CAMS, a registrar and transfer agent for mutual fund houses, "The KYC status can be validated only when the documents given as proof of identity and proof of address are validated by the issuing authority concerned." Currently, only PAN and Aadhaar can be validated by the issuing source.
A press release dated April 25, 2024, from the five KYC registration agencies (KRAs) states, "All KRAs put together hold KYC records of 10.83 crore. Out of which, 73% of KYC records are under 'KYC validated' status, 15% of KYC records under 'KYC Registered' status and balance 12% are under 'KYC On-Hold' status."
You may also like
- Punjab CM Bhagwant Mann inaugurates 120-bed multi-speciality hospital in Moga
- India issues Black Sea advisory after strike in Ukraine's Odesa, calls maritime corridor 'highly volatile'
- Pralhad Joshi takes charge as Union education minister a day after Dharmendra Pradhan's resignation
- 'INS Mahendragiri symbol of Atmanirbhar Bharat': PM Modi in Mann Ki Baat
- 'Who approved pellet guns?' Rahul Gandhi writes Amit Shah over 'barbaric assault' on students
To assist mutual fund investors with the new KYC rules, the Association of Mutual Funds in India ( AMFI ) has provided guidelines for completing KYC both online and offline.
How to Do KYC Online for Investments
Investors can complete their KYC online through any mutual fund's website. According to AMFI, "The investor can log on to any of the Mutual Fund's website and visit the page of 'Modify/Update KYC' and follow the steps such as entering his/her details and uploading documents as required. Once the Email ID/Mobile number are validated and also the details entered/uploaded are validated by the KRAs with official data base (such as Income Tax database on PAN, Aadhaar XML/DigiLocer/M-Aadhaar), the KYC status will change to 'Validated'."
Here is an example of how to do KYC online on HDFC Mutual Fund's website:
1. Visit HDFC KYC Verification.
2. Enter the PAN and date of birth.
3. You will be redirected to another website to complete the KYC. Keep the following documents handy:
- PAN card as proof of identity.
- Aadhaar as proof of address. Ensure your correct mobile number and/or email ID is seeded with Aadhaar.
- Other validation documents such as proof of a change in marital status, name of father/spouse.
- Signature on white paper. Alternatively, you can sign directly on the computer screen using a mouse or by hand.
5. Your current email address and mobile number will be displayed. Click continue.
6. Upload PAN as proof of identity.
7. You will be redirected to DigiLocker to complete the KYC.
8. Enter your Aadhaar number and the captcha code. A one-time password (OTP) will be sent to your registered mobile number and email address. Enter the OTP. Remember, the OTP is valid for 10 minutes. Once verified, enter a 6-digit PIN on the DigiLocker website.
9. Provide consent to the KRA agency to access your information for verification.
Once consent is given, your KYC process will be completed. The KRA agency will take 10-15 days to update the status to KYC Validated.
How to Do KYC Offline for Investments
For those unable to complete KYC online, AMFI has provided an offline method. According to the association, "Investors can download the KYC Form from any of the AMC's, RTA's or AMFI websites and submit it to any of their AMC's or RTA's offices." Along with the duly-filled form, investors must submit required documents such as PAN, Aadhaar, and others.
Loving Newspoint? Download the app now
