How to verify your Mutual Fund KYC status and what to do next

30 Apr 2024 , 02:54 PM

Leading up to March 31, 2024, numerous mutual fund (MF) investors faced uncertainty. Failure to meet specific conditions resulted in requests for re-doing the KYC (know your customer) for their MF investments, or risk being barred from transactions starting April 1, 2024.

KYC procedures are mandatory for mutual fund investors, both residents and non-resident Indians (NRIs), ensuring smooth investment and redemption processes. Here’s a straightforward guide on checking your KYC status, understanding different KYC statuses, and the subsequent actions you may need to take.

For Indian Residents:

First, check your KYC status by following these steps:

1. Visit https://www.cvlkra.com/
2. Navigate to the ‘KYC Inquiry’ tab, enter your Permanent Account Number (PAN), and submit.
3. Your status, such as ‘On Hold,’ ‘Registered,’ ‘Validated,’ or ‘Rejected,’ along with the relevant KYC Registered Authorities (KRAs), will be displayed.

Understanding your KYC status:

Status: On Hold

Reasons for an ‘On Hold’ status may include:

1. Submission of non-officially valid documents (OVDs) like utility bills,
2. Aadhaar and PAN not linked, or
3. Outdated contact details.

This status restricts various financial transactions, such as initiating new Systematic Investment Plans (SIPs) or making new investments.

What can you do?

Online Method:

Ensure your phone is registered with Aadhaar as you will receive an OTP on your Aadhaar-registered mobile number. Follow these steps:

1. Visit the CVL Contact Verification page: https://validate.cvlindia.com/CVLKRAVerification_V1/
2. Validate your contact details through the provided links based on your investments with different KRAs.
3. If your status is due to non-validation of your phone number or email ID, add your PAN and proceed to validate your email ID or phone number through OTP.
4. After submission, proceed to validate your KYC through Aadhaar.
5. Choose your preferred Aadhaar Validation Option and follow the prompts.
6. Upload the masked Aadhaar and complete the e-signature process through Aadhaar OTP.
7. Check for updates after a few hours.

If unable to proceed online, seek assistance from your financial advisor, mutual fund distributor, or online investment portal.

Status: Registered

If your KYC status is ‘Registered,’ you can invest and redeem from existing fund houses but cannot invest in schemes from new fund houses. Modify your KYC online to avoid issues when investing in new schemes.

Status: Validated

With a ‘Validated’ status, you are compliant with KYC and can undertake any investment actions without redoing your KYC.

Offline Method:

Submit your physical KYC form and Aadhaar card copy to any fund house to complete your KYC.

For Non-Resident Indians (NRIs):

KYC for NRIs:

NRIs must complete KYC through Aadhaar. Failure to do so will result in a ‘KYC Registered’ status, necessitating re-KYC for future transactions with new fund houses.

Acceptable Officially Valid Documents (OVDs) for NRIs include a passport, PIO Card, or OCI Card. Providing proof of an overseas address is mandatory, with translations for foreign language documents.

Phone Number Issues:

Many NRIs face mobile number validation issues. Existing NRIs with foreign numbers are exempt but must ensure PAN reflects NRI status.

**This guide aims to simplify the KYC process. Consult your advisor or Mutual Fund Distributor (MFD) for assistance, as this topic is subject to change.