Know Your Customer (KYC) procedures are mandatory processes that mutual fund investors should adhere to invest and redeem without any hassles. It is important for residents as well as non-resident Indians (NRIs).
If you have used any other way than Aadhaar verification, you will have to redo or modify your KYC.
Here’s a simplified guide on how to check your KYC status, understand different KYC statuses, and what actions you might need to take.Also Read: ‘KYC is a problem crying to be fixed’, laments Edelweiss MF’s Radhika Gupta
For Indian Residents
The first thing that you need to do is check your KYC status.
To check your KYC status:
1. Visit the https: //www.cvlkra.com/
2. Go to the ‘KYC Inquiry’ tab, enter your Permanent Account Number (PAN) and submit.
3. You will see a status such as ‘On Hold’, ‘Registered’, ‘Validated’, or ‘Rejected’ and the KYC Registered Authorities (KRAs) that are in charge of your KYC.
Understanding your KYC status
Status: On Hold
KYC status may be put on hold for several reasons:
1.Use of non-officially valid documents (OVDs) such as utility bills,
2.Aadhaar and PAN is not linked , or
3.Outdated contact details.
The impact of an ‘On Hold’ KYC status includes restrictions on various financial transactions such as starting new Systematic Investment Plans (SIPs), making new investments, or redeeming existing investments.
What can you do?
Online Method
Before doing this, make sure that your phone is registered with Aadhaar as you will receive OTP on your Aadhaar-registered mobile number.
Moreover, the online method might not work if you had shared utility bills or other non-valid OVDs. In this case, you might have to share a physical KYC with your service provider Or fund house.
Steps
- Visit the CVL Contact Verification page: https://validate.cvlindia.com/CVLKRAVerification_V1/
If you have investments with other KRAs, you have to validate your contact details through their links. You can find your KRA when you check your KYC status.
Karvy KRA: https://www.karvykra.com/KYC_Validation/Default.aspx
CAMS KRA: https://camskra.com/pan_aadhaarlink.aspx
NDML KRA: https://kra.ndml.in/ClientInitiatedKYC-webApp/#/ClientinitiatedKYC
2. Your “On Hold” Status might be due to non-validation of your phone number or email id. In that case, you can add your PAN and you will see the option to validate your email ID or phone number through OTP.
3. You can then click on Submit. Then, you have to proceed to get your KYC validated online.
4. You will also see the status of your PAN and Aadhaar linkage. If your Aadhaar – PAN is not linked, you have to first link it before proceeding.
5. On the same page, you will see the tab that will prompt you to validate your KYC through Aadhaar.Proceed with Aadhaar Validation.
6. Choose any one of the Aadhaar Validation Options. If you use the 1st option i.e. eAadhar PDF, please make sure to download only masked eAadhar. You can download it from: https://myaadhaar.uidai.gov.in/genricDownloadAadhaar.
The Aadhaar letter PDF Password will be in 8 characters.
Combination of the first four letters of your name (as in Aadhaar) in CAPITAL letters and Year of Birth in YYYY format. Example: Your name is ANISH Y KUMAR and your year of birth is 1989. Then your e-Aadhaar password is ANIS1989.
7. After uploading the masked Aadhaar, you will see the KYC response that will show the matching score.
8. Next, you will link your digilocker to CAMS. You will be signed up if you don’t have Digilocker. Enter the required fields.
9. Now, your e-signature is done through Aadhaar OTP.
You can check for updates after a few hours.
If you are not able to do it online, you can get in touch with your financial advisor, mutual fund distributor or your online investment portal.
Status: Registered
Your KYC status can come as “Registered” if you have done your KYC through a Physical Aadhaar or a non-Aadhaar OVD like a passport not validated by the authority.
You can invest and redeem from your existing fund houses. But you can’t invest in schemes of new fund houses.
It would be better to modify your KYC through any of the online platforms, so that you don’t have to face any issues when investing in schemes of a new fund house.
You just have to click on Modify KYC and follow the process. You will need to keep your PAN and signature handy before starting the process.
Status: Validated
You are compliant with KYC with Aadhaar, and you can take any investment action. You don’t have to redo your KYC.
Offline Method
You can submit your physical KYC form and a physical copy of your Aadhaar card to any fund house to complete your KYC.Also Read: What are the KYC norms for opening a demat account? MintGenie explains
For Non-Resident Indians (NRIs)
KYC for NRIs: NRIs also need to complete the KYC process through Aadhaar. If you don’t complete the KYC using Aadhaar (most NRIs might not have Aadhaar), the status will be marked as ‘KYC Registered,’ and you will need to undergo re-KYC for any future transactions with new fund houses.
For NRIs, acceptable Officially Valid Documents (OVDs) include a passport, PIO Card, or OCI Card, and providing proof of an overseas address is compulsory. If the OVD doesn’t carry address details, documents from foreign government departments or a letter from a foreign embassy or mission in India are acceptable as address proof. Additionally, any address proof in a foreign language must be translated into English.
Issues with phone number: Many NRIs are facing issues with their mobile number validation. Typically, there is only email validation for NRIs. However, if you have shared an Indian mobile number, you will see that your phone number is not validated. You might no longer be using the phone number. In this case, you have to update the KYC.
For existing NRIs with foreign numbers, you are exempt from the mobile validation process but you must ensure that your PAN reflects your NRI status. Also, if you don’t have a phone number, you can continue investing if your PAN is marked as NRI.
In this article, we have tried to simplify the KYC mess so that you can take the best course of action. This is an ever-evolving topic. So, it would be best to consult your advisor or MFD to get your KYC validated.
Padmaja Choudhury is a freelance financial content writer. You can reach out to her at [email protected].
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