How to do KYC for Mutual Funds?

As per SEBI regulations, all banks and financial institutions require customers to complete KYC (Know Your Customer) formalities before investing in Mutual Funds (MFs). SEBI, the regulatory body for market investments, mandates this process to ensure compliance and investor security. KYC requires the customer to submit important identification documents like Aadhaar Card, PAN Card, etc. If you are a Mutual Fund investor and haven’t completed the Mutual Fund KYC process yet or if your KYC information needs to be updated, then read this blog post to know how to go about it.

Understanding KYC for Mutual Funds

KYC is mandatory to carry out all kinds of banking and investment transactions. Mutual Fund KYC is a verification process by which banks and other financial institutions verify an investor’s identity, address and other personal details before allowing them to invest in Mutual Funds. This process helps these institutions to prevent fraudulent transactions, money laundering and identity theft. 

For Mutual Fund investments, Resident customers can complete the KYC verification in two ways as given below.

Digital Process

You can complete the KYC process using ICICI Bank’s iMobile app. This is called eKYC and it allows new investors to complete their KYC easily using Aadhaar OTP authentication. Existing investors can get their KYC status updated from ‘Registered’ to ‘Validated’ using this process, which is available on iMobile and is integrated with CAMS (Computer Age Management Services).  

Here’s how non-KYC compliant investors can complete eKYC through iMobile: 

• Log into iMobile

• Go to ‘Invest’ tab and select ‘Mutual Funds’

• If you haven’t completed your KYC yet, you’ll see the ‘Complete MF KYC’ option

• Click on it and you’ll be redirected to the CAMS website

• Log into DigiLocker and complete your KYC. 

During this process, your Aadhaar number and PAN will be validated. An OTP will be sent for verification to your registered mobile number and e-mail ID by CAMS. Once verified, your KYC will get completed in 3-4 working days.

Here’s how existing investors can validate their KRA KYC status through iMobile:

• Log into iMobile

• Go to ‘Invest’ tab and select ‘Mutual Funds’

• Click on the menu (3 horizontal lines) in the top left corner

• Click on ‘Check MF KYC Status’

• If your KYC status is not ‘Validated’, you will be redirected to the CAMS website

• Log into DigiLocker and validate your MF KYC.

Your KRA KYC status will get changed from ‘Registered’ to ‘Validated’ in 4-5 working days.

Physical Process:

If you are unable to complete your MF KYC process digitally, you can complete it by visiting any ICICI Bank Branch with your valid original documents (PAN Card & Aadhaar Card).

1. Download & fill the form: Get the Uniform KYC Application Form from a KYC Registration Agency (KRA) and fill it with the required details.

   1. For Individuals: click here

   2. For non-individuals: click here

2. In-Person Verification (IPV): IPV must be conducted by an AMFI / NISM-certified employee of a bank, an AMC (Asset Management Company) or an RTA (Registrar and Transfer Agent), who will also verify the original documents.

3. Submit Documents: The completed application form, along with the required documents (PAN Card, Aadhaar Card, etc.), must be submitted to any ICICI Bank Branch and further submitted to a SEBI-registered intermediary like an AMC or a KRA office.

4. Processing & Confirmation: If documents are submitted at an ICICI Bank Branch or at an AMC, verified copies of the documents need to be submitted to the KRA who will verify the details and confirm KYC completion within 10 days.

Types of KYC Status for Mutual Funds

SEBI has categorised investors based on their KYC verification status into the following types:

1. KYC Validated

• Investors who have completed the MF KYC process using Aadhaar-based authentication (via DigiLocker or Aadhaar QR code) fall under this category

• These investors have no restrictions and can invest in any Mutual Fund. 

2. KYC Registered

• Investors who have completed the MF KYC process using a Driving Licence, Passport or Voter ID instead of Aadhaar fall under this category

• They can only invest in or redeem from their existing Mutual Funds but cannot invest in a new Mutual Fund

• To move to the ‘Validated’ status, they must redo the KYC process using Aadhaar. 

3. KYC On Hold 

• Investors who have not linked their Aadhaar and PAN or have incomplete KYC details fall into this category

• These investors cannot invest in any Mutual Fund until their KYC process is completed

• SEBI has now allowed such investors to redeem their existing investments based on due diligence by Mutual Fund companies

• To move to ‘Validated’ status, they need to complete the KYC process using Aadhaar. 

Conclusion

Completing KYC is essential for investing in Mutual Funds. With SEBI’s updated guidelines, Aadhaar-based verification is the quickest and most recommended method. If your KYC status is ‘Registered’ or ‘On Hold’, update it using Aadhaar to ensure seamless Mutual Fund investments.  

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