Ranjan Varma

How to Get KYC (Know Your Customer) Compliant? January 22, 2011

Mutual Fund investors need to be KYC compliant compulsorily w.e.f. 1st Jan, 2011. Investment both by a lump sum or through a SIP need to be KYC compliant. The reason of this post is the following question:

I was trying to buy a mutual fund of XXX. Then I got a message that I need to have a MF KYC. Does it mean that one needs to set up the KYC with each and every AMC?

No, it need not be done for each AMC. The said KYC requirements must be completed through CDSL Ventures Limited (CVL) (website), which has been appointed to complete the verification of the KYC norms of investors investing in mutual funds schemes.

You need to hand over the following documents at any points of service (POS) locations in India :

* A filled in application form (Available at the CVL website under “Downloads”)
* Your PAN card
* An address proof (passport, ration card, voter ID card, electricity bill, drivers license)
* A passport size photograph

Upon submission, the POS will verify all your documents and dispatch it to CVL. You will receive a letter of Know Your Customer (KYC) acknowledgment.

For NRIs, they don’t have anything that can be done online, but at least they have outlined a process for them.

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Ranjan Varma has written 471 post on this blog.

Ranjan Varma has over 20 years of work experience in the financial services industry. Ranjan has worked with LIC & LIC Housing Finance in various positions like Branch Manager, Manager Sales, Area Manager, Deputy Regional Manager, etc. Ranjan has experience working in areas like Sales, Marketing, Investments & HR. Ranjan Varma has been interacting on his blog @ http://ranjanvarma.com since 2007, with posts on how to manage money. Ranjan Varma edits a personal finance website and has built products & tools for financial management @ http://rupeemanager.com. Ranjan also delivers training on personal finance. Ranjan has spoken at various seminars/workshops at Corporates and many Educational Institutions. Ranjan believes in Vipassana, a way of self-transformation through self-observation (to see things as they really are). Ranjan also aspires to create new businesses & projects from time to time.

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How to Get KYC (Know Your Customer) Compliant?

5 Comments

  1. jitendra

    What is link for NRIs?


  2. Ranjan

    @Jitendra no separate link. NRIs need to follow the same process.


  3. pushpendra paliwal

    Why they need KYC if i am already mentioning the PAN card number then why KYC?


  4. Smart Singh

    Pushpendra,
    That’s a logical question. But India has this legacy issue of different IDs and procedures for different department. Ideally, we should all have just one unique ID and that should be enough. But we end up having passports, ration cards, pan cards, voter IDs, and so on.

    RBI has made it mandatory to be KYC compliant for any investment in mutual funds from 2011 onwards. And the system was flooded with applications in December. I heard that CVL is running a backlog now. Many people who submitted their forms in December are still getting “present in process” as status on the CVL website.


  5. SELVARAJ

    If the CDSL is delaying KYC for several months despite several reminders, Whom should we contact/complaint. Pl let us know the authority and its Email address.
    whom we should make complaint in case CDSL is delaying and not responding to our reminders.


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Ranjan Varma

Ranjan Varma has over 20 years of work experience in the financial services industry. Ranjan has worked with LIC & LIC Housing Finance in various positions like Branch Manager, Manager Sales, Area Manager, Deputy Regional Manager, etc. Ranjan has experience working in areas like Sales, Marketing, Investments & HR. Ranjan Varma has been interacting on his blog @ http://ranjanvarma.com since 2007, with posts on how to manage money. Ranjan Varma edits a personal finance website and has built products & tools for financial management @ http://rupeemanager.com. Ranjan also delivers training on personal finance. Ranjan has spoken at various seminars/workshops at Corporates and many Educational Institutions. Ranjan believes in Vipassana, a way of self-transformation through self-observation (to see things as they really are). Ranjan also aspires to create new businesses & projects from time to time.

How to Get KYC (Know Your Customer) Compliant? January 22, 2011

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