In short: Knowing your KYC status is crucial since mutual fund investors now have to abide by new KYC regulations. Visit any KYC Registration Agency website to check your status right away.
The new KYC (Know Your Customer) rules that have been implemented. It covers the following key points:
1. Investors can check their KYC status by logging into the websites or apps of KYC Registration Agencies (KRAs) like CAMS, Karvy, CVL, and NDML. The status can be “KYC status on hold”, “validated”, or “registered/verified”.
2. Investors with “KYC Validated” status do not need to do anything and can continue their transactions.
3. Investors with “KYC Verified” status can continue their existing investments, but need to resubmit KYC documents for any new investments, unless their KYC was done using Aadhaar.
4. Investors with “KYC On-Hold” status have their financial transactions restricted until they submit the required KYC documents at an AMC (Asset Management Company) branch or KRA.
5. The process to update KYC involves logging into a mutual fund website, entering details, and uploading documents.
6. The new KYC process has made it tougher for Non-Resident Indians (NRIs) to invest in mutual funds.
7. Investors can also do the KYC process offline by downloading the form and submitting it along with documents to an AMC or RTA (Registrar and Transfer Agent) office.
