Let us tell you that according to the rule applicable from April 1, 2024, the KYC of investors was put on hold if Aadhaar-PAN was not linked, due to which investors could neither invest in any mutual fund nor redeem their investment.

KYC can be done even without Aadhar-PAN link

SEBI has given big relief to such investors. According to the new rule, even without linking Aadhaar-PAN, investors can get their KYC done with OVD i.e. officially valid documents like Aadhaar, PAN card, Voter ID, passport and driving license. The KYC status of such an investor will be KYC registered.

Also Read: Passport Tips: This one mistake in your passport can send you to jail

Investment is possible only in the fund for which KYC is done.

An investor with KYC registered status can deal only with that fund for which KYC has been done and not with any other new fund. At the same time, if an investor has linked Aadhaar-PAN and got his KYC done, then the status of that investor will be KYC Validated. Such investors can invest in all mutual funds.

KYC registered investors will have to get KYC done again to invest in any new fund. If KYC status is on hold, then the investor’s email, mobile number, address are not verified. Investors with KYC on hold will not be able to deal in mutual funds nor invest nor will they get the facility of redemption.

Where can you check KYC Status?

If any investor wants to check the status, he can check KYC status on www.CVLKRA.com
. By going to KYC inquiry page, investors can check KYC status with their PAN number. On this page, investors can also see their KYC registered authorities i.e. KRA such as CAMS, Karvy etc.

Relief given in the circular of May 14

If the investor’s KYC is not validated or registered, then he can do KYC by visiting the website of his KRA with officially valid documents. In the circular dated May 14, SEBI has given big relief to mutual fund investors.

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KYC Updates: Banks are preparing to further strengthen the KYC process. To make KYC standards stricter, banks are going to add more verification layers to identify accounts and account holders.

According to the plan, KYC will be updated in one or more accounts or joint accounts linked to one phone number. The bank can further verify the customers who have more than one account and have opened the account with different documents.

Customers with multiple accounts will be verified!

This report has come out quoting the Economic Times. A bank official said that multi-level secondary identifiers such as PAN, Aadhaar and unique mobile number are being considered for joint accounts. In the coming days, more verification can be done for customers having multiple bank accounts and banks can demand more documents for KYC from such account holders.

KYC rules are being ignored

The government has formed a committee under the chairmanship of Finance Secretary TV Somanathan which is looking into ensuring interoperable KYC norms across the financial sector. There have been allegations of ignoring KYC rules on the part of fitness companies. Due to non-compliance of regulatory and KYC rules, RBI has taken strict action against Paytm Payments Bank. But banks do not want to take any more risk regarding this.

Preparation for uniform KYC

At present, banks accept passport, Aadhaar, voter ID card, NREGA card, PAN card, driving license as proof from customers for opening an account. But in case of joint accounts, banks can demand PAN, Aadhaar and unique mobile numbers together as multi-level identifiers. Uniform KYC was discussed in the recent meeting of the Financial Stability and Development Council (FSDC) chaired by Finance Minister Nirmala Sitharaman.

The post KYC Updates : Banks will make KYC process more strict! Customers with more than one account will have multilevel verification! first appeared on Rightsofemployees.com.