KYC or Know Your Customer is a process through which an institution such as a bank can verify your identity. It is a crucial process and must be completed as per the guidelines set by the RBI. KYC helps curb illegal activities like online fraud and money laundering. Becoming KYC-compliant is the first step towards accessing a range of services. Luckily, you can get your KYC done quickly and check your KYC status online using your PAN card in a hassle-free manner.
Here is a detailed article on what is KYC, its status, and its importance.
What is KYC?
KYC is a process through which companies such as financial institutions verify your identity and personal details. These institutions access your details with your consent. These include your digital signature, fingerprint, and Aadhaar details. Through customer identification and verification, KYC acts as a safeguard against illegal activity.
What is KYC status?
Your KYC status tells you whether you are KYC compliant or not. Upon filing KYC forms and providing the necessary documents, your application will be scrutinised based on which it will be either denied or approved. You can check your KYC status online through portals such as:
For instance, if your KYC is verified, cvlkra.com indicates your status as “MF-Verified by CVLMF”.
KYC with PAN card
Issued by the IT department of India, a PAN card serves as proof of identity and income in India. You can use your PAN card to support your KYC application and later carry out a KYC status check online effortlessly. The alternative is to check your KYC status by furnishing details like your name, date of birth and category. The latter is more cumbersome, and the PAN-based KYC status check gives results speedily.
Steps to check KYC status
You can check your KYC status online either by entering details such as your date of birth and name or simply with your PAN number. It can be done via the portals listed above. Given below are the steps you must follow to check your status via the CDSL Ventures portal.
- Visit the Central Depository Service Limited website.
- Enter your PAN details.
- Alternatively, enter your name, DOB, and pick an option from the exempt category drop-down menu.
- Click on the ‘Submit’ button.
- If your KYC is pending, then it will display “Pending”. If it is verified, then you will see displayed “MF-Verified by CVLMF”.
How to update my KYC status?
To update your KYC status, visit a KRA, R&T or AMC office and fill out the necessary forms. Then, provide copies of the required documents. The forms and documents produced will then be verified. You may also update your KYC via the eKYC route.
How to complete KYC?
You can complete your KYC either via the Aadhar-based biometric mode, online mode or offline mode. For the offline mode, fill out the information in the forms and provide the necessary documents. If you choose online, visit the KRA website, create an account, provide mobile and Aadhaar details and upload attested e-Aadhaar copies. In the Aadhaar-based biometric mode, an authorised person will visit you to collect details and map fingerprints.
Why is KYC important?
KYC helps institutions identify you, evaluate your profile and check your financial activities. It also aids the prevention of unlawful activities like identity theft, online fraud, and money laundering. KYC is required to open a new bank account, apply for a loan/ debit card, open a locker at a bank or invest in mutual funds.
