How to update your KYC to continue investing in mutual funds from 1st April 2024?
This article shows you the easy steps to update your KYC so that you can continue your mutual fund investments without any hassles.
How to update your KYC to continue investing in mutual funds from 1st April 2024?
Posted on 16 Apr 2024 • Updated on: 17 Apr 2024
Author: Sayan Sircar
6 mins read
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This article shows you the easy steps to update your KYC so that you can continue your mutual fund investments without any hassles.
📚 Topics covered:
- What is the news on Mutual Fund KYC?
- How to check your KYC status?
- What do the other statuses mean?
- How to update your KYC online using Aadhaar?
- What do you need for the KYC update?
- What should NRIs do?
- How long does the KYC update take?
What is the news on Mutual Fund KYC?
As per SEBI guidelines, the Know Your Customer (KYC) rules have been tweaked slightly from 1st April 2024.
The main change is that Aadhaar is now the most important and only acceptable identity proof for mutual fund KYC. Given that all PAN cards are linked to Aadhaar, and Aadhaar has both demographic and contact information, linking all mutual fund KYC to Aadhaar is logical. Whether this practice is right or not is beyond the scope of this article.
If your KYC is correct as per Aadhaar as per these new KYC rules:
- your KYC status will show as “KYC Validated”
- you can continue investing in existing mutual funds
- you can invest in new mutual funds from a different AMC (say SBI mutual funds where till date you had only Kotak and ICICI mutual funds) anytime
- there is no limit on the amount of money you can invest in mutual funds in a year or anytime
How to check your KYC status?
The easiest way to check your KYC status is the CAMS KRA website: direct link and Google search result.
You will have to enter your PAN in the above box, click the Captcha and wait for the result. If you see “KYC Validated” under KYC Status then your KYC is Aadhaar-based and you don’t have to do anything else. Here is a new article for you to read: These are India’s worst performing mutual funds: are you invested in these funds?.
Apart from CAMs KRA, the other KRAs you can use are NDML, CVL, CAMs and Karvy.
If the result shows anything other than “KYC Validated” under KYC Status, you must move to the next step.
What do the other statuses mean?
New term:
'Officially Valid Document' (OVD) means the passport, the driving licence, proof of possession of Aadhaar number, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address. - Source: RBI website
'Officially Valid Document' (OVD) means the passport, the driving licence, proof of possession of Aadhaar number, the Voter's Identity Card issued by the Election Commission of India, job card issued by NREGA duly signed by an officer of the State Government and letter issued by the National Population Register containing details of name and address. - Source: RBI website
Any document, like a bank statement that is not in the RBI list above, is no longer valid for KYC.
If you already invest in mutual funds and you have used any other OVD, except Aadhaar which was validated via OTP and a photo of your face, you will likely see the status as “KYC Registered”. This status will likely allow you to continue your existing funds. Only when you try to invest with a new AMC, then you need to submit your Aadhaar.
The KRA record can show other values like “On Hold” with multiple issues due to choice of OVD, validation of contact details etc.
The solution here is an online KYC update using Aadhaar. This process takes 5-10 minutes and is completely online. Of course, offline KYC with your Aadhaar card, Aadhaar XML copy, PAN card etc. by visiting your nearest CAMS / Karvy office is always an option.
How to update your KYC online using Aadhaar?
My KRA record was also showing “KYC Registered” so I decided to act immediately. I don’t remember what documents I used in 2007 when I did my first KYC, must have been my PAN and Passport, since Aadhaar did not exist at that time.
The trick here is to use an AMC website which:
- offers online KYC update based on Aadhaar
- is one where you have already invested (this might also be possible with AMCs where you have not already invested)
I used Edelweiss AMC since I already have invested in their funds. You can try other sites (or even Edelweiss directly - if it works for KYC update then why not try once?). I was not charged any money for the KYC update.
Is Edelweiss the only site that is allowing re-kyc?
A reader has confirmed that UTI AMC website has the same facilty.
What do you need for the KYC update?
- 5 minutes (max 10) of time in a quiet place in the morning. It takes some time to generate multiple Aadhaar OTPs so please do it early morning when the load on Aadhaar servers should be low
- Use a device like a smartphone, laptop, iPad/Tablet or desktop PC/Mac. The device MUST have a front-facing camera. Your photo will be taken using the device’s camera
- A scan of your signature that you must upload. For this, sign on a piece of paper and take a photo from the device you are doing KYC
- Please enable location access on the web browser you are using (Chrome, Firefox, Safari, Edge etc.) else the KYC will not work
- Visit the AMC site which allows KYC updates (not all allow this KYC update). I used Edelweiss AMC and logged in using PAN and OTP
- Use the Re-KYC button under Profile (top right corner) to start and follow the steps on the screen one by one
What should NRIs do?
NRIs are not required to have Aadhaar. Therefore NRIs should contact their Mutual Fund Distributor or Bank Relationship manager for guidance on the next steps.
How long does the KYC update take?
I did the Re-KYC process at around 6.45 am on Fri 12-Apr-2024 and on Mon 15-Apr-2024 at 8.24 pm got this email:
I rechecked on CAMS KRA and got this:
Mission accomplished!
A quick update:
We have updated your address under folio XXXXXXXX, based on the feed received from KRA. For more details, call us at…
The actual update that took place was my address since my Aadhaar address has a few extra characters (addition of post-office name) which my original address-proof did not have. On the morning of Tue 16-Apr-2024, I got a bunch of emails and SMSes (one sample above) from the AMCs where I have invested.
Related Articles
- What are the best mutual funds for first-time investors?
- What should NRIs do if your PAN has become inoperative?
- How should an NRI handle investments and accounts in India before shifting?
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This post titled How to update your KYC to continue investing in mutual funds from 1st April 2024? first appeared on 16 Apr 2024 at https://arthgyaan.com
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