The recent changes in the KYC norms, implemented from April 1st, 2024 have introduced strict rules on the KYC validation process. While these norms came in as a measure to enhance security and compliance, these mandatory changes have affected a lot of investors (both residents and non-resident Indians) when it comes to investing in Indian mutual funds. If you’re one of the investors who had to revalidate their KYC or a new investor whole KYC status is on hold, here’s how you can check or verify Mutual Fund KYC status.
Step-by-Step Process to Verify Mutual Fund KYC Status:
- Visit CVL KRA website, i.e. www.cvlkra.com
- Go to the “KYC Inquiry” tab, enter your Permanent Account Number (PAN), and click on submit.
- Your Mutual Fund KYC status will be displayed on the screen. It will showcase the status either as ‘On Hold’, ‘Validated’, ‘Registered’, or ‘Rejected’.
Also read: NRI Mutual Fund KYC in India: The Ultimate Guide 2024
What does Mutual Fund KYC Status ‘On Hold’ Mean?
If your mutual fund KYC status shows as ‘On Hold’, then it restricts you from making any new investments in mutual funds like lump sum or Systematic Investment Plan (SIP). If your mutual fund KYC status shows ‘On Hold’, then it may be because of these reasons:
- Submission of non-valid documents, i.e. utility bills
- Non-linking of PAN and Aadhar
- Non-updation of correct contact details
Also read: PAN-Aadhaar Linking for NRI: Is it Mandatory?
What to do if Mutual Fund KYC status shows ‘On Hold’?
There are two ways to resolve this issue, via online and offline methods. Here’s what you can do in such a case:
Online Method:
- Visit the CVL verification page, i.e. https://validate.cvlindia.com/CVLKRAVerification_V1/
- Now click on the provided links and validate your contact details.
- If your KYC validation was stuck due to non-validation of phone number and email ID, kindly add your PAN and proceed with the OTP validation via email ID or phone number.
- Once submitted, proceed with the Aadhar. For this, you need to follow the steps mentioned in the screen. You also need to upload your Aadhar copy and complete the e-sign via Aadhar-based OTP validation.
- Now check after a few hours and your validation will show on the CVL KRA website.
For validating mutual fund KYC from other KYC Registrations Agencies (KRA) you can follow the below given links:
- NDML KRA –https://kra.ndml.in/ClientInitiatedKYC-webApp/#/ClientinitiatedKYC
- Karvy KRA – https://www.karvykra.com/KYC_Validation/Default.aspx
- Cams KRA – https://camskra.com/PanDetailsUpdate.aspx
- Cams KRA (Pan+Aadhaar Seeding) – https://camskra.com/pan_aadhaarlink.aspx
Note:
- For online validation of your mutual fund KYC, you need to ensure that you have your Aadhar registered phone number with you for OTP.
- Users whose KRA is from other KRA agencies like NDML, CAMS, and more, need to follow the steps on those said KRA’s validation link and follow the similar process of Aadhar validation as shared above.
Offline Method:
- You need to submit your physical KYC form along with a copy of your Aadhar card to the fund house for validation of your KYC.
What does Mutual Fund KYC Status ‘Registered’ Mean?
- If your mutual fund KYC status shows as ‘Registered’ then this is how you can transact in mutual funds:
- For Resident Investors: Resident Investors can continue to transact with their existing mutual fund scheme.
- For NRI Investors: NRI/OCI Investors can transact/invest in both existing and new mutual fund schemes.
What does Mutual Fund KYC Status ‘Validated’ Mean?
- If your mutual fund KYC status shows as ‘Validated’ then you are KYC compliant and need not worry about redoing your KYC again. You can invest, redeem and further make new investments across any schemes offered by various fund houses.
How to validate mutual fund KYC for Non-Resident Indians (NRIs)?
- With the recent changes in the KYC norms and the decrease in the acceptable official valid documents for NRIs, they have to complete their KYC via Aadhar. In absence of such, their KYC status will showcase ‘KYC Registered’ allowing them to make investments in the existing schemes of fund houses but cannot make future investments with different fund houses.
Acceptable Offical Valid Documents for NRIs to Validate Mutual Fund KYC
Below is the list of documents that are acceptable official valid documents for NRIs to validate their mutual fund KYC:
- Passport Size Photo
- PAN Card
- Aadhar Card
- Passport/PIO Card/OCI Card
- Current Overseas Address Proof
Note: All of these documents should be self-attested by the user.
Many NRIs are facing issues with mobile number validation due to newfound rules of Aadhar-based validation. However, it should be noted that as per the regulation, NRIs/OCIs with foreign numbers are exempted from the Aadhar-linked OTP verification requirements provided their PAN reflects NRI status. It is expected that a resolution will be provided in due course helping ease mutual fund investments for NRI.
Also read: PAN Card for NRI: The Ultimate Guide 2024
Invest in NRI Mutual Funds with SBNRI
NRIs can now download the SBNRI App and choose to invest in different mutual schemes in India with ease. You can also get detailed mutual fund advice from experts at SBNRI. Also, visit our blog and YouTube channel for more details.
SBNRI is an authorized Mutual Fund Distributor platform & registered with the Association of Mutual Funds in India (AMFI). ARN No. 246671. NRIs willing to invest in mutual funds in India can download the SBNRI App to choose from 2,000+ mutual fund schemes or can connect with the SBNRI wealth team to better understand Mutual Fund investments.
FAQs
How to check KYC for mutual fund?
- Here’s how you can check KYC for mutual fund:
- Visit CVL KRA website, i.e. www.cvlkra.com
- Go to the “KYC Inquiry” tab, enter your Permanent Account Number (PAN), and click on submit.
- Your Mutual Fund KYC status will be displayed on the screen. It will showcase the status either as ‘On Hold’, ‘Validated’, ‘Registered’, or ‘Rejected’.
How do I verify my KYC verification?
- You can visit the CVL KRA website or any other KRA agency website and follow the steps mentioned in the above blog to verify Mutual Fund KYC.
How do I activate my KYC in mutual funds?
- You need to validate your KYC to activate it. As per the new KYC norms implemented from April 1, 2024, mutual fund investors need to verify mutual fund KYC to validate it. You can check your KYC status by visiting CVL KRA or any other KRA agency website. Once your KYC status is shown, you can validate it by following the steps mentioned in the above blog.
Is KYC mandatory in MF?
- Yes, KYC is mandatory for mutual fund investments. In absence of KYC validation, investors cannot make any investments in the mutual funds.
What is KYC details for mutual fund?
- KYC details for mutual funds mean the documents submitted by the user for the KYC validation process. This includes PAN Card, Aadhar Card in case of residents. For NRIs, it includes Passport/OCI Card/PIO Card, Current Address Proof.
Can we verify KYC online?
- Yes you can verify mutual fund KYC online by visiting any KYC Registration Agencies website. You can also follow the steps mentioned above in this blog to verify mutual fund KYC and validate it.
