How to Become KYC Compliant: KYC is an acronym for “Know Your Customer,” a term widely used in the context of customer recognition.
In order to ‘know’ their clients, SEBI has prescribed certain requirements relating to become KYC compliant standards for financial institutions and financial intermediaries including mutual funds. This includes in person verification (IPV), identity and address verification, financial status, occupancy, and many other personal information prescribed by guidelines, rules and regulations.
Know Your Client (KYC) is a requirement for mutual fund investments (and virtually all financial instruments). Compliance on the part of manufacturers of financial products is crucial to better know their investor.
Under The Prevention of Money Laundering Act, 2002 (“PMLA”), the Securities and Exchange Board of India ( SEBI) mandates that Mutual Fund Houses comply with (KYC) requirements, regardless of the investment size.
However, the speed of the investors towards this enforcement was slow, as not all investors have completed their KYC requirements to become kyc compliant. Investors find it burdensome to comply with KYC and a rather complex process, involving a good amount of paperwork. And this is valid, to some degree.
To fix this, the government has named India’s Central Registry of Securitisation Asset Reconstruction and Protection Interest (CERSAI) to set up a central KYC registry that simplifies the process of complying with KYC procedures — and you need to do it once; either through a bank, mutual fund, or an insurance company you’ve invested in. That means investors / account holders don’t have to fill out the KYC form every time for other manufacturers / providers of financial goods.
Did you keep to KYC standards?
Doesn’t it? Well, here’s how to get you started …
- Ok, here you can get the CKYC shape
- Passport scale photograph of recent years
- Identity Proof
- Copy of PAN Card
- Proof of address
Naturally, this is done physically once and you need to submit the form with your documents to your broker or investment adviser.
Secondly, you need to do an In-Person Verified (IPV) procedure. There are options for either visiting the sales office point or setting up an online or video meeting to do this.
But this method can prove time consuming and prolonged. To add to the frustration, if either the customer service executive or the investor is unavailable, these online meetings could be cancelled many times.
There’s one option, though …
E-IPV was launched by Quantum Mutual Fund. Their E-CKYC process is paperless and is completely online.
Let us bring you through it. To keep to become kyc compliant process in a trouble-free manner all you need is:
- Connection to the Internet
- The Web Camera
- Self-tested versions of your photo identity and address evidence
- Plain paper signature
And in just two weeks follow the 5 simple measures to become compliant.
Go ekyc.quantumamc.com Input your PAN number and confirm validity of your PAN number. It’ll also test if your KYC has already been checked.
Next, enter your other personal information including Mobile Phone , Email and Aadhar Number (UID). For Central KYC purposes you are required to enter more information on the next page.
Now you need to upload your pan card and adress evidence self-tested scanned copies. Then you need to sign on a plain paper piece of paper for the signature then put it in front of the camera to catch them.
Please note that, using OTP authentication, SEBI allows investments of up to Rs 50,000 per financial year by mutual fund for Aadhaar-based e-KYC. If the limit of 50,000 has been reached, you are expected to undergo the verification process in person.
Next is your Check In Person (IPV). Unlike the physical test, your live video is captured through your system camera here.
Therefore you don’t need to visit physically to prove you ‘re alive. All is possible and 24×7 at your convenience.
Confirm, and submit all your information. Last but not least, all you need now is to wait 2 weeks as your KYC will be uploaded to Central KYC servers and checked during this period. In fact, you’ll also get an email confirming your KYC status for become kyc compliant. In the mean time your KYC status is communicated to you. You can check your status to become kyc compliant here, too.
You will receive a 14-digit identification number-KIN (KYC identification number) after the complete process is completed. And finally, your declaration on FATCA will also be available in the same KYC form.
Complying with the KYC protocol will allow you to start investing in a capital that provides investment opportunities like mutual funds. You wouldn’t be asked to invest in Quantum Mutual Fund schemes; all they do is lend you a helping hand, making the path to financial independence easier.