BackDe-jargoned | KYC norms
De-jargoned | KYC norms
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What is KYC?
KYC stands for know your client. Compliance with KYC norms are mandatory if you invest Rs50,000 or more in mutual funds (MFs). These norms have been put in place to prevent the serious global issue of money laundering— converting money earned through illegal means, such as terrorism, into legal money by passing it through various banking channels.
Check your status
You can find out whether you are already KYC-compliant. To do that, visit ‘www.cvlindia.com’ and click on Inquiry on KYC at the bottom right side of your screen. Enter your permanent account number (PAN) and submit. If you are already KYC-compliant, you will get an acknowledgement. Take a print out of this acknowledgement and attach a copy with your MF application form every time you invest Rs50,000 or more.
If you aren’t KYC-compliant
You will easily get a KYC form on the Internet. Take a printout, fill up the form and attach an address proof, such as an electricity or telephone bill, and your PAN. Submit a copy at a centre that accepts KYC forms, such as your bank’s branch or your MF’s offices or its registrar’s offices. You can also get a KYC form at these centres.
Remember MIN?
Some of you must still be having a mutual funds identification number (MIN). MIN was made mandatory in 2007 for all MF investors. One of the documents required to be submitted with a MIN application was PAN. MIN was later abolished but all was not lost. If you had submitted your PAN copy along with the MIN application, you would be already KYC-compliant. But do remember to check your status once.
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