What are KYC norms?

KYC or know your customer is a process that individuals need to complete before they purchase any kind of financial product such as a mutual fund, insurance policy, stock or even before they can open a bank account.

It involves verification of the individual’s identity, address and other key details. KYC verification needs to be done in person (IPV) by an authorized person such as a mutual fund distributor. However, verification over a webcam also meets this requirement and many fund houses and mutual fund platforms have this feature. eKYC for mutual funds is set to be a reality soon.

KYC is a one-time procedure for investing in mutual funds. The same KYC is valid for all mutual funds in India. However a bank KYC cannot work for investing in mutual funds.