Investors must follow KYC procedures when investing in mutual funds. These rules help confirm your identity and ensure proper handling of all processes. Following KYC rules makes it easier for you to invest or withdraw money from mutual funds. It is like showing your ID to ensure everything is safe and legal. Here are instructions on how to check the KYC status of mutual funds:
For Indian Residents
For Indian residents, the first step is to verify your KYC status. Here is how you can do it:
1 . Visit the CVL KRA website: Open your web browser and go to https://www.cvlkra.com/.
2. Go to the ‘KYC Inquiry’ tab on the website.
3. Enter your PAN: In the ‘KYC Inquiry’ section, enter your Permanent Account Number (PAN).
4. Submit your information: After entering your PAN, submit the form to check your KYC status.
After submitting the form, you can view your KYC status. The status can be ‘On Hold’, ‘Registered’, ‘Validated’, or ‘Rejected’. This section also displays which KYC Registration Authorities (KRAs) handle your KYC process.
Understanding the KYC status
Status: On Hold
If your KYC status is ‘On Hold’, various reasons may account for it.
1. Use of non-officially valid documents (OVDs): If you submitted documents like utility bills instead of officially valid documents, your KYC might be delayed.
2. Aadhaar and PAN not linked: If you haven’t linked your Aadhaar and PAN, you can’t complete the KYC process.
3. Outdated contact details: If your contact information is outdated, you might need to update it to proceed with the KYC verification.
In each of these cases, you need to take corrective action to resolve the issues and complete your KYC process.
Steps to resolve ‘On Hold’ status
Online method
1 . Ensure you have registered your phone with Aadhaar: Before you begin, confirm that your mobile number is linked to your Aadhaar card because you will receive a One-Time Password (OTP) on this number.
2. Proceed with online verification: Once your phone is registered with Aadhaar, proceed with the online KYC verification process.
However, consider a few important points:
- Issues with non-valid documents: Issues can arise if you initially provided non-officially valid documents (OVDs), such as utility bills, making the online method ineffective.
- Physical KYC submission: If the online method fails due to non-valid OVDs, complete a physical KYC process. In this case, personally submit your KYC documents to your service provider or fund house.
Therefore, ensure you possess the correct documents and that you have registered your mobile number with Aadhaar. Moreover, switch to the physical KYC method in case of any problems.
Steps to validate your contact information
1. Visit the CVL Contact Verification Page: Go to https://validate.cvlindia.com/CVLKRAVerification_V1/
If other KRAs manage your investments, verify your contact details with each one. To know which KRA handles your investments, check your KYC status. This will show you the right links for contact verification.
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. Validate your contact information: Your ‘On Hold’ status might be due to an unvalidated phone number or email ID. So, enter your PAN on the validation page, then validate your email or phone via OTP.
2. Check PAN and Aadhaar linkage: Additionally, check the status of your PAN and Aadhaar linkage. If they are not linked, link them to proceed.
4. Proceed with Aadhaar validation: Click on the Aadhaar validation tab on the same page to proceed with the Aadhaar validation.
5. Select the Aadhaar validation option: Choose one of the available Aadhaar validation options. If you select ‘eAadhaar PDF’, ensure you download only the masked eAadhaar. You can download it from: https://myaadhaar.uidai.gov.in/genricDownloadAadhaar.
6. Upload the masked Aadhaar: Upload the masked Aadhaar on the validation page and check the KYC response that includes the matching score.
7. Link DigiLocker to CAMS: Link your DigiLocker account to CAMS. If you do not have a DigiLocker account, create one.
8. Complete e-signature: Finalize your KYC verification by completing the e-signature using an Aadhaar OTP. Check for updates after a few hours.
9. Alternative options: If you are unable to complete the process online, seek assistance from your financial advisor or mutual fund distributor.
Status: Registered
If your KYC status is ‘Registered,’ it means you completed your KYC using a Physical Aadhaar or a non-Aadhaar Officially Valid Document (OVD), such as a passport, without validation by the authority.
You can still conduct investment and redemption activities with your existing fund houses. But you are restricted from investing in schemes offered by new fund houses.
So, to avoid complications when investing in schemes from new fund houses, update your KYC information through any of the available online platforms.
Status: Validated
If your KYC status is ‘Validated,’ it means you have fully complied with KYC requirements using Aadhaar. Therefore, you can undertake any investment actions without the need to redo your KYC process.
Offline method
Alternatively, if you prefer the offline method, physically submit your KYC form along with a copy of your Aadhaar card to any fund house. This means you can complete your KYC process without relying on online platforms.
For Non-Indian Residents
NRIs must complete the KYC process using Aadhaar. However, since most NRIs might not possess an Aadhaar card, you need to take alternative measures. Moreover, if you do not complete the KYC using Aadhaar, the status will be ‘KYC Registered’. So, new fund houses will require re-KYC for any future dealings.
Acceptable Officially Valid Documents (OVDs) for NRIs
NRIs can provide a passport, PIO Card, or OCI Card as acceptable Officially Valid Documents (OVDs). However, they must provide proof of an overseas address. Documents from foreign government departments or a letter from a foreign embassy or mission in India serve as acceptable address proof if the OVD lacks address details. Additionally, translate any address proof in a foreign language into English.
Issues with phone number validation
Numerous NRIs face complications with mobile number validation. Those who have provided an Indian mobile number may find it invalidated, especially if the number is no longer in use. So, you should update your KYC.
For existing NRIs with foreign numbers
Existing NRIs with foreign numbers are exempt from the mobile validation process. However, ensure that your PAN reflects your NRI status. Furthermore, if you lack a phone number, you can continue investing with PAN. But it must reflect your NRI status.
Final words
It is crucial to verify and maintain your KYC status for hassle-free investment experiences in mutual funds. Because it ensures regulatory compliance and enhances security. So understand the steps of how to check the KYC status of mutual funds. Remember validating your KYC is not just a formality; it is a necessity of responsible investing.
