What is KYC?
KYC Means “Know Your Customer”. To invest in any financial instruments, you are required to first provide a few personal details. Customer identification is a key part of system in place to serve many purposes like it can help restrict money laundering and fight financial crime in a more targeted manner. Today, KYC checks are almost compulsory for all financial dealings.
Customer is required to submit all KYC documents before investing in various instruments. All financial institutions are mandated by the RBI to do the KYC process for all customers before giving them the right to carry out any financial transactions.
Types of KYC
There are two types of KYC verification processes. Both are equally good, and it is simply a matter of convenience whether one chooses to opt for one type over the other. Both are as follows:
Aadhar-based KYC: This verification process is done online, making it highly convenient for those with a broadband or internet connection. Here, the customer needs to upload a scanned copy of their original Aadhar card. If the customer wishes to invest in a mutual fund, with Aadhar based KYC the opportunity to do so is only up to Rs.50,000 a year.
In-Person based KYC: If the customer wishes to invest more in mutual funds per year, they will be required to carry out an in-person verification KYC which is done offline.
For offline KYC process, here are the steps to follow,
- Download the KYC Form
- Fill in with your details, specifically PAN or Aadhaar
- Visit the nearest KYC registration agency office (KRA)
- Submit the form with attached ID and address proof
While this process is quite simple, it does require legwork and can take longer too. KYC verification can take up to 7 working days.
You can find instructions and guidelines to fill the KYC form and download KYC form from the below link,