Step by step guide to do mutual fund KYC online: If a mutual fund investor's KYC status is 'verified', 'registered' or 'on-hold', then he/she is required to do the re-KYC again

New KYC rules: How to do KYC online, offline for mutual fund investors It is essential to have 'KYC Validated' status to ensure that an investor can invest in any scheme of any mutual fund house easily without giving KYC documents again and again

Many mutual fund investors are struggling to understand the new KYC rules that have come into effect from April 1, 2024. According to the rules, the KYC status of an individual has been divided into three categories: validated, verified and on-hold.

Investors with "KYC Validated" status are not required to do anything. They can easily continue to do all the transactions. However, those with the KYC status either as "verified" or "on-hold" are required to redo the KYC process (called re-KYC) using PAN and Aadhaar to get KYC validated status.

Investors whose KYC status is registered or verified would see no impact on their existing investments, but they would have to submit the KYC documents again to make new investments. Investors whose KYC status is on-hold cannot do any transaction until they have done their KYC.

According to the FAQs issued by CAMS (a registrar and transfer agent for mutual fund houses), the KYC status can be validated only when the documents given as proof of identity and proof of address are validated by the issuing authority concerned. Currently, only PAN and Aadhaar can be validated by the issuing source.

A press release issued on April 25, 2024, by the 5 KYC registration agencies (KRAs) says, "All KRAs put together hold KYC records of 10.83 crore. Out of which, 73% of KYC records are under 'KYC validated' status, 15% of KYC records under 'KYC Registered' status and balance 12% are under 'KYC On-Hold' status."

Also Read: 1.3 crore mutual fund accounts have KYC on-hold status; how to check MF KYC status

To make things easier for mutual fund investors struggling with the new KYC rules, the Association of Mutual Fund in India (AMFI) has in a tweet on X listed out ways to do KYC online and offline.

How to do KYC online for investments

An investor can do KYC online through any mutual fund's website. As per AMFI, "The investor can log on to any of the Mutual Fund's website and visit the page of 'Modify/Update KYC' and follow the steps such as entering his/her details and uploading documents as required. Once the Email ID/Mobile number are validated and also the details entered/uploaded are validated by the KRAs with official data base (such as Income Tax database on PAN, Aadhaar XML/DigiLocer/M-Aadhaar), the KYC status will change to 'Validated'."

Here is an example of how to do KYC online on a mutual fund's website. We have taken an example of doing KYC online on HDFC Mutual Fund's website.
Step 1: Visit https://investor-web.hdfcfund.com/kyc-verification
Step 2: Enter the PAN and date of birth
Step 3: You will be redirected to another website to do the KYC. Keep the following documents handy:
a) PAN card as proof of identity
b) Aadhaar as proof of address. Ensure that your correct mobile number and/or email ID is seeded with Aadhaar number
c) Other validation documents such as proof of a change in marital status, name of father/spouse
d) Signature on white paper. Alternatively, if possible, you can also sign directly on the computer screen using a mouse or by hand

To do the KYC, you will be required to grant the system access to camera, location and microphone of your device. Select the checkbox and click on "I have these continue".

Step 4: Your current email address and mobile number will be reflected on the screen. Click on continue to proceed
Step 5: In the next step, you will be required to upload PAN as proof of identity
Step 6: Once the PAN is uploaded, you will be redirected to DigiLocker to do the KYC
Step 7: Enter your Aadhaar number and the captcha code. A one-time password (OTP) will be sent to your registered mobile number and email address. Enter the OTP. Remember that the OTP will be valid for 10 minutes. Once the OTP is successfully verified, you will be required to enter a 6-digit PIN on the DigiLocker website
Step 8: In the next step, you will be required to provide consent to the KRA agency to access your information for verification

Once the consent is given, your KYC process will be completed. The KRA agency will take 10-15 days to update the status as KYC Validated.

How to KYC offline for investments
AMFI has listed the process of doing KYC offline for those who are unable to do it online. According to the association, "Investors can download the KYC Form from any of the AMC's, RTA's or AMFI websites and submit it to any of their AMC's or RTA's offices." Do note that along with the duly-filled form, mutual fund investors are required to submit the required documents as well, such as PAN, Aadhaar and others.

This story originally appeared on: India Times - Author:Faqs of Insurances