Did You Know About KYC?

By BankBazaar | April 4, 2011

Earlier the KYC Know your customer) norms had to be complied by those investors who invest more than Rs 50,000 in Mutual Funds. But, w.e.f January 1, 2011, you will need to comply with the know-your-customer (KYC) norms before you invest in a mutual fund , irrespective of the amount.

What is KYC?

They are norms under Prevention of Money Laundering Act to keep a check on the legality of funds used for investment. KYC is done to prevent money laundering, i.e., converting illegal or “black” money into legitimate currency through various channels, as key documents and details such as bank details, permanent account number (PAN) card, residence proof are captured by way of the KYC process to ensure that the investor is genuine and can be traced if need be.

How to get it done?

Download the KYC form from websites of the Association of Mutual Fund of India, or Amfi, MF industry’s trade body, (www.amfiindia.com) or from that of your fund house or any of the point of sale (POS) terminals that Amfi has appointed throughout the country. Amfi’s website has a list of POS terminals in your city.

Attach:

Self-certified copy of your PAN card

An address proof such as your telephone or electricity bills

Submit these along with you KYC form, to your nearest POS. Show your original PAN card at the POS, which will be given back to you instantly once it has been verified with the copy. The POS will give you an acknowledgment across the counter on the same day.

Unlike in a systematic investment plan where you submit the copy of the KYC Acknowledgement only at the time of submitting your application form and not with every installment,  investing in a MF will require you to submit a of the KYC Acknowledgement each time you invest. It is not required to submit a copy of your pan card once you are KYC-compliant as it is understood that you have a PAN card.

Where to check?

Visit www.cvlindia.com and click on “inquiry on KYC”. A small window will pop up on your screen that will ask for your PAN card number. Fill it up and submit it. If your KYC is approved, you will get a notification on the screen saying so. Take a printout of it as proof.

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.
Category: Articles

About BankBazaar

BankBazaar is the world's first neutral online marketplace for instant customised rate quotes on Loans, Credit Cards, Insurance and Investment products. Shop for financial products just like you buy everything else now - online.

10 thoughts on “Did You Know About KYC?

    1. Team BankBazaar

      Hi Vijay, Thanks for your feedback. Please keep reading our blog for more.

      Reply
    1. Team BankBazaar

      Hi Vijay, We’re glad that you do. We’d love for more people to have knowledge about terms like this.

      Reply
    1. Team BankBazaar

      Hi Rahul Kadav,
      Are you confusing us with someone else? We’re in the business of helping people get the best of Loans, Credit Cards, and a host of other financial products. If you’d like to know more, click here
      Cheers,
      Team BankBazaar

      Reply
    1. Team BankBazaar

      Hi Jai Chand,
      Depending on the product for which you want KYC done, the procedure will differ. Here’s an example. You can download the KYC form from the Association Of Mutual Fund Of India website or from that of your fund house. You will have to attach a copy of your PAN Card, an address proof (if you have an Aadhar Card) like your electricity or phone bill and submit them to your nearest Point Of Sale (POS).

      Cheers,
      Team BankBazaar

      Reply
    1. Team BankBazaar

      Hi Rahul,

      Thanks for writing in. If you can be a little specific about your query related to KYC, we can try helping you with it.

      Cheers,
      Team BankBazaar

      Reply

Leave a Reply

Your email address will not be published.