Mutual fund KYC: A look at these new KYC rules for mutual fund investors

Mutual fund KYC: Mutual fund investors need to check their know-your-customer (KYC) status as new KYC rules have already been implemented from April 1, 2024. To invest without any hassle, investors should go through all these rules because, under the new rules, investors will have to meet certain criteria to invest in any mutual fund.

In this article, we will look at the new KYC rules for mutual fund investment.

As KYC rules in Mutual Funds have changed since April 1, 2024, it has become necessary to get KYC done through Aadhaar and PAN. If the MF investor has done KYC using an Aadhaar card and PAN card, then his KYC status will be Validated. Only people with validated status can invest in all mutual funds.

If KYC is done without PAN or Aadhaar and using passport, or voter ID documents, then the investor can deal with the same fund for which KYC has been done and not with any other new fund. Also, the KYC status of those investors will be KYC registered/verified. Such investors will have to get KYC done again to invest in a new fund.

If KYC status is on hold, this means the investor's email, mobile number, and KYC documents are not verified.

This is to be noted that investors whose KYC status is on hold, will neither be able to invest nor able to redeem the mutual funds. 

Mutual fund KYC: Last date

The last date for KYC validation is April 30, 2024.

How to check your MF KYC status online?

Here is a step-by-step guide to checking your mutual fund KYC status online.

1- Login to www.CVLKRA.com.
2- Then, click on 'KYC inquiry'.
3- After clicking on this, a new page will open.
4- Then, enter your details like PAN, complete the CAPTCHA, and then submit it.
5- The JYC status will be displayed now.

If the KYC of the investor is not validated then they can visit the website of their KRA and validate the status with a PAN card and Aadhar card.

What if investors don't get KYC validated?

If mutual fund investors do not get their KYC validated, then their mutual fund folios will be frozen, which means, such investors will not be able to sell units. Also, they will not be able to top up in the same folio number.

If your Aadhaar and PAN are not linked or any spelling is incorrect in the current KYC, then you will have to go to the KRA office (KYC registration agency) in such a situation for the validation of your KYC. It will be done through a physical form.