Mutual fund KYC status : The introduction of new Know-Your-Customer (KYC) regulations for mutual funds, effective from April 1, 2024, has changed how investors can access mutual fund schemes . That's why it's important for mutual fund investors to check their KYC status and understand what it means, so they can invest in mutual fund schemes without any hassle.
What are the new KYC rules for mutual funds?
An ET report by Preeti Motiani states that, under the old rules, investors with KYC compliance could easily invest in any mutual fund. However, under the new rules, investors must meet specific criteria to do so.
Types of mutual fund KYC status and their impact
KYC Validated
If your KYC status is "Validated," it means that the documents you submitted have been checked with the source that issued them. If the information hasn't changed, you can easily invest in any mutual fund scheme. Currently, only Permanent Account Number (PAN) and Aadhaar can be validated this way. So if you've provided these for KYC, your status is likely validated, allowing you to invest in multiple mutual fund companies.
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KYC Registered/Verified
A "Registered" or "Verified" KYC status indicates that the documents provided by an individual cannot be verified directly with the issuing authority. As a result, mutual fund investors may still invest in any mutual fund company, but they must resubmit the necessary documents each time. This situation is typical for individuals who used documents other than PAN or Aadhaar, like a passport or voter ID card, to prove their address and identity during the KYC process .
These individuals can undergo a re-KYC process by submitting PAN or Aadhaar to invest in different mutual fund schemes without hassle. This moves them to the 'KYC validated' category. However, this process won't affect their existing mutual fund investments .
KYC on hold
When your KYC status is "On Hold," it indicates that the KYC documents, mobile number, and email ID of the mutual fund investors haven't been verified. Because of this, all financial transactions, as well as some non-financial ones, will be limited until the required documents are submitted. This could affect ongoing SIP transactions, redemptions, and other activities, the report said.
ALSO READ | New KYC rules for mutual fund investors: You may need to update your KYC again! Details here
To resolve this, mutual fund investors must validate their email and mobile number to continue transacting in their existing mutual fund schemes. Additionally, they should complete the re-KYC process (by providing PAN or Aadhaar) to avoid having to submit extra documents for future investments.
How to check your mutual fund KYC status online
To check their KYC status online, a mutual fund investor can do the following:
Step 1: Go to www.CVLKRA.com.
Step 2: Click on "KYC Inquiry."
Step 3: A new page will open. Enter your PAN, complete the CAPTCHA, and click "Submit." The KYC status will then be displayed based on the PAN you entered.
What are the new KYC rules for mutual funds?
An ET report by Preeti Motiani states that, under the old rules, investors with KYC compliance could easily invest in any mutual fund. However, under the new rules, investors must meet specific criteria to do so.
Types of mutual fund KYC status and their impact
KYC Validated
If your KYC status is "Validated," it means that the documents you submitted have been checked with the source that issued them. If the information hasn't changed, you can easily invest in any mutual fund scheme. Currently, only Permanent Account Number (PAN) and Aadhaar can be validated this way. So if you've provided these for KYC, your status is likely validated, allowing you to invest in multiple mutual fund companies.
ALSO READ | What is the power of compounding? Starting SIP investments early can yield long-term returns
KYC Registered/Verified
A "Registered" or "Verified" KYC status indicates that the documents provided by an individual cannot be verified directly with the issuing authority. As a result, mutual fund investors may still invest in any mutual fund company, but they must resubmit the necessary documents each time. This situation is typical for individuals who used documents other than PAN or Aadhaar, like a passport or voter ID card, to prove their address and identity during the KYC process .
These individuals can undergo a re-KYC process by submitting PAN or Aadhaar to invest in different mutual fund schemes without hassle. This moves them to the 'KYC validated' category. However, this process won't affect their existing mutual fund investments .
KYC on hold
When your KYC status is "On Hold," it indicates that the KYC documents, mobile number, and email ID of the mutual fund investors haven't been verified. Because of this, all financial transactions, as well as some non-financial ones, will be limited until the required documents are submitted. This could affect ongoing SIP transactions, redemptions, and other activities, the report said.
ALSO READ | New KYC rules for mutual fund investors: You may need to update your KYC again! Details here
To resolve this, mutual fund investors must validate their email and mobile number to continue transacting in their existing mutual fund schemes. Additionally, they should complete the re-KYC process (by providing PAN or Aadhaar) to avoid having to submit extra documents for future investments.
How to check your mutual fund KYC status online
To check their KYC status online, a mutual fund investor can do the following:
Step 1: Go to www.CVLKRA.com.
Step 2: Click on "KYC Inquiry."
Step 3: A new page will open. Enter your PAN, complete the CAPTCHA, and click "Submit." The KYC status will then be displayed based on the PAN you entered.
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