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Know Your Customer or KYC Form is a mandatory compliance check and is the first step towards registering personal information and authenticating your identity before investing in mutual funds. There are five variants of mutual fund KYC form that an investor has to submit based on the applicant being an individual or non-individual like institution, Hindu Undivided Family (HUF), etc. For updating personal details, the investor has to submit a fresh KYC Form, mentioning the details that need to be changed.
The KYC process can be completed either offline or online. These services are now offered online to make it convenient for applicants to complete the KYC process with just a few clicks across geographies. The original paper document is the same as the one available online. These processes are supervised by regulatory authorities like Securities and Exchange Board of India (SEBI) and Reserve Bank of India (RBI) to prevent illegal transactions.
Below is the process for Aadhaar based eKYC process:
In-Person Verification (IPV) process has been made a mandatory part of the KYC process by SEBI (Securities and Exchange Board of India) since the 2011. It is a physical verification process that is an integral part of verifying the authenticity of the applicant. After the applicant has filled up the KYC form with the required personal details and submitted it with documents as proofs, it is followed by the IPV process.
The IPV procedure is usually available both online and offline, with modern fund houses digitalizing the process for the convenience of their existing and prospective investors. For the offline option, the applicant has to be physically present at any of the registered KRA centers that are located across India. You have to present your original Aadhaar Card and then provide biometric verification through thumb imprint or retinal scan. After the completion of the verification process, you can start investing in mutual fund schemes.
For the online process through video calling, the time for the IPV is finalized as per the preference of the applicant. Keep relevant documents like PAN card, proof of address, cancelled cheque and a passport size photograph handy as you will need to upload them on the official website of your AMC, mutual fund house or any registration agency like CAMS or Karvy, before you get on the video call using your smartphone’s front camera. Here too, you need to show the hard copies of all these documents for 10 seconds each.
The following is the KYC process when PAN card is the documentary proof:
There are five KRAs from where the KYC Form can be downloaded. Individuals and non-individuals can fill up the form with required personal details and submit it along with documents such as proofs of identity and address. The following are the 5 types of KYC Forms:
Central KYC or cKYC acts as a central database that enables CERSAI (The Central Registry of Securitization Asset Reconstruction and Security Interest in India) to manage the stored personal information of an applicant across locations in India. This enables banks and other financial institutions like mutual fund houses and insurance companies to access the information any time they require.
An applicant interested in investing in mutual funds has to first submit the KYC Form to qualify for opening a cKYC account. You will be sent a 14-digit identification number that you need to enter at the time of making any new investment or buying any financial product. The unique identification number will give the relevant financial institution the access to your centrally saved personal details. This saves you from the hassle of filling up and submitting the same personal information every time you make an investment or purchase a financial product.
The paper based KYC Form requires mutual fund investors to fill up the form with essential personal details like name, contact number, address, etc. This is the first step towards initiating the KYC process to start investing in mutual funds.
Below are the fields in the KYC Form that you have to fill up accurately:
Details about personal identity: This section is dedicated to personal information about the applicant like name, name of father or spouse, PAN number, gender, date of birth, address, occupation and citizenship. Most of these fields are and have to be supported with documents as proofs of the details provided.
FATCA/CRS Details: The FATCA (Foreign Account Tax Compliance Act) has been made mandatory for all investors planning to invest in mutual funds. Investing overseas has gradually become increasingly popular among investors in India. The same can be said about overseas investors showing active interest in investing in the country. This has made it essential for a legal body to regulate overseas investments and ensure transparency of income from international as well as national sources. This law has been designed to enable the Indian Government to keep a close tab on the income of these investors and also control tax payments on such income. Some of the essential details that have to be entered here are ‘Country of Jurisdiction of Residence’, ‘Tax Identification Number/equivalent of the relevant jurisdiction’, ‘Country Tax Jurisdiction Code as per ISO 3166’, ‘Overseas Address for Communications’, etc. This section is relevant only for resident Indian investors investing overseas.
Details of Nominated Person: Individual investors can nominate another individual who can invest in mutual funds on their behalf. However, this individual has to be a family member like parents or guardian, sibling, spouse, children, etc.
What is the KYC form?
KYC (Know Your Customer) Form is a part of the mandatory compliance check before being allowed to make investments in mutual funds. It requires individuals and non-individuals like Hindu Undivided Family (HUF) and institutions to fill up the required information accurately and submit it along with required documents as proof of identity and address. It is a process for verifying their authenticity.
How can I download KYC form?
There are five variants of KRAs from where you can download the KYC Form - CAMS KRA Form, CVL KRA Form, NSE KRA Form, Karvy KRA Form and NSDL KRA Form. You can visit the official website of any one of these to download the KYC Form.
What is cKYC & KRA KYC form?
Central KYC or cKYC acts as a central database that enables CERSAI (The Central Registry of Securitization Asset Reconstruction and Security Interest in India) to manage the stored personal information of an applicant across locations in India. This enables banks and other financial institutions like insurance companies and fund houses to access the information from the central database any time individuals and non-individuals want to invest in mutual funds or buy a financial product.
There are 5 variants of KYC forms issued by KRA centres located across India - CAMS KRA Form, CVL KRA Form, NSE KRA Form, Karvy KRA Form and NSDL KRA Form. Individuals and non-individuals (HUF and institutions) can access this form by visiting any of their branches or by downloading the form online from any of their official websites.
Where can I get KYC form?
You can download any one of these variants of KYC form - CAMS KRA Form, CVL KRA Form, NSE KRA Form, Karvy KRA Form or NSDL KRA Form. Otherwise, you can get the KYC form offline by visiting any of the KRA branches that are located throughout India.
What are the KYC documents that have to be submitted?
Below are the documents that need to be submitted along with the KYC Form: Proof of Identity – PAN Card, Aadhaar Card, Voter ID, Driving License, Passport, NRGEA Job Card Proof of Address – Gas Bill, Electricity Bill, Landline Bill, Bank Account Statement, Lease Agreement, Life Insurance Policy
How can I apply for KYC?
You can apply for KYC by downloading any one of these variants of KYC form - CAMS KRA Form, CVL KRA Form, NSE KRA Form, Karvy KRA Form or NSDL KRA Form. Alternatively, you can secure the KYC form offline by visiting any of the KRA branches that are located across India.