Mutual fund KYC status: Meaning of validated, verified, registered KYC and how it impacts for MF investments A mutual fund investor who has undergone KYC process previously may be required to do KYC process again due to different KYC status. Know the meaning of different KYC status and how it impacts you
The new rules for Know-Your-Customer (KYC) standards for mutual funds, which came into effect on April 1, 2024, impact how easily a person can invest in mutual fund schemes.Hence, it has become important for mutual fund (MF) investors to check their KYC status and understand its meaning to invest in any mutual fund schemes seamlessly and easily.
Meaning of different KYC status for mutual funds
The old rules allowed a KYC-compliant investor to seamlessly invest in MF schemes of any of the mutual fund houses. However, the new rules allow only those investors who meet certain criteria to make such investments.
Let's have a look at the meaning of different KYC status.
KYC Validated: It means the documents provided by you are validated by the issuing source. If there is no change in the information on the documents, a mutual fund investor can easily invest in any mutual fund scheme. Currently, only PAN and Aadhaar can be validated from the issuing source. So those who have given PAN and Aadhaar for KYC are likely to have their KYC status validated. They can continue to invest in multiple mutual fund companies.
KYC Registered/Verified: This means the documents given by the individual cannot be independently verified from the issuing authority. This would mean that mutual fund investors can invest in any mutual fund house by producing the required documents again. This applies to individuals who have given other valid documents (other than PAN or Aadhaar) such as passport, voter ID card, etc., as proof of address and proof of identity for completing KYC process.
Such individuals can undergo a re-KYC process by submitting PAN / Aadhaar to seamlessly invest in schemes of different mutual fund houses i.e. shift to the 'KYC validated' category of individuals. However, there will be no impact on the existing mutual fund investments of such individuals.
Also Read: Who can do re-KYC online and who has to re-KYC offline for MF investments?
KYC - on hold: This shows the KYC documents as well as the mobile number and email ID of the mutual fund investors are not validated. All financial and certain non-financial transactions will be restricted till the required documents are submitted. This would mean that current SIP transactions, redemption transactions, etc., will be impacted.
In such a case, the mutual fund investor will have to verify their valid email and mobile number to do transactions in their existing mutual fund schemes. Further, mutual fund investors should undergo the re-KYC process (by submitting PAN / Aadhaar) to avoid the submission of various documents again while making fresh investments.
How to check mutual fund KYC status online
A mutual fund investor can follow the steps below to check their KYC status online:Step 1: Visit www.CVLKRA.com
Step 2: Click on "KYC Inquiry"
Step 3: A new webpage will open. Enter your PAN, click on captcha and click on "Submit". On the basis of the PAN entered the KYC status will be displayed on the screen.
This story originally appeared on: India Times - Author:Faqs of Insurances
