What is KYC and How to check your KYC status

By | November 12, 2010

Recently, I have started learning share trading on my own. I took an ICICI trading account and initially started with IPOs. If you know or not, recent Coal India IPO was a big hit making 40% profit for retail investors within days of listing. I already tried investing in mutual funds and made good returns too. I was investing through Way2Wealth before. As I got the trading account, I tried to invest in mutual funds through my trading account. After I have gone through the mutual fund research, I selected a fund, selected the amount, and clicked the apply button. It showed the error “KYC Details Are Not Found.”

So, I called the ICICI Direct people and found that my KYC Status is not found on the Central Depository Services and I need to update it by providing address and identity proofs. They sent me the KYC form. I filled and submitted it at the ICICI Direct.

So, I have done a little research and learned about the KYC Norms implemented by SEBI.

What is KYC?
KYC – Know Your Client/Customer is a term used for client/customer identification. Financial institutions need to know who the customer is, need to verify the address, and know about the financial and occupational status. It is mandatory that investors have to be KYC compliant if they are investing more than 50,000 in mutual funds. The provisions of The Prevention of Money Laundering Act, 2002 (PMLA), has made it mandatory for all Mutual Funds to comply with the KYC norms of the applicants desirous of subscribing to their ‘units.’

For this process, CDSL Ventures Limited (CVL) has been formed by the Mutual Fund industry to create the necessary infrastructure to handle the KYC on behalf of the Mutual Fund Industry. CVL is handling the work of “Customer profiling and Record Keeping” for issuance of Know Your Client (KYC) acknowledgment to mutual fund investors.

How to update the KYC?
Download the KYC form here. Take a print out, fill it, add address proof and ID proof, and hand it over at the Investor Service Desk of your bank/trading service provider/CVL Point of Service.

KYC is linked to your PAN and you don’t need to fill KYC form for every mutual fund you are subscribing for. Just do it once and it will available for all you investments that is the biggest advantage of having updated the KYC in CVL.

How to check the KYC status?
Go to the CVL website http://www.cvlindia.com/ and click on “Inquiry on KYC.” Enter your PAN and see the status of your application.

169 thoughts on “What is KYC and How to check your KYC status

  1. Sandhya

    Dear Naveen,I have invested in 6 different schemes from different AMC’s. I have been applied for change of address in KYC for 2 times where there is no update in my schemes. Kindly sujest as how can i track the reason for rejection.

    Reply
    1. Naveen Post author

      You will be withdrawing money into your bank account electronically, so you won’t be having any problem with already invested funds. Regarding application for address change, write to the Help Desk at cvlhelpdesk@cdslindia.com. They will sure help in resolving the issue.

      Reply
  2. Swami

    The centralized KYC for mutual funds by CDSL is pathetic to say the least. I submitted my documents more than a month ago (everything perfect) but it still shows “Documents Yet to Receive”. When I called CDSL they said they have received the document 10 days ago and it would take another 15 days to process. I asked the person to atleast change the status to “Processing” but now it is still in “Document Yet to Receive” status. They dont even have time to change status online. What is KYC. It is Know your customer. I am customer of the bank or mutual fund and not CDSL. Why on earth they are funneling all this KYC processing and making this a bottleneck. RBI is pathetic. Somebody must have got a kickback from CDSL.

    Reply
  3. hemant

    I have a KYC since Dec. 2010 with a Kolhapur address. In August 2011, I shifted permanently to Sangli. In Nov. 2011, I applied for a change in address to Karvy through Axis MF at Sangli. I received the Std. acknowledgement saying that if I do not receive any communication from them within 10 days, I consider the application as accepted. But when I checked on CVL website in Feb. 2011, the status was still showing ‘verified’ on Dec. 2010. When contacted CVL informed me that the application was rejected as a copy of PAN card was not accompanying the application. I do not understand why a copy of PAN is required again as the original KYC was issued after confirmation of my PAN. Still, I applied again on through CAMS on 13th Feb. 2012 along with all the required documents. Even after nearly a month, I am yet to receive the modified KYC. The status on CVL still shows ‘ verified ‘ as on Dec. 2010 which means the new address has not been modified.
    If I have to invest in MF, can I use my original KYC but with my new contact details in the Application Form ?

    Reply
  4. RAGHU

    hi Naveen
    first thank to you
    i invested already in 2008
    now i want to redeem the same
    my KYC status is front office verification done
    shall i redeem to my bank account?

    Reply
  5. Amol

    Dear Naveen,

    Thanks for sharing the information. But before linking posting the link, have you realised that the “CVL Point of Service” opens an excel with no data. However, I also know that this is not your fault but the CVL website itself has this problem. they are not ready to fix it.

    Reply
    1. Naveen Post author

      This post was written in 2010 and at that time, it was working. I used it personally to suggest the nearest PoS. I don’t have a copy now to uploaded it to my blog.

      Reply
  6. pramod nair

    Thanks Naveen
    I have download Excel EMI calculator.

    Reply
  7. Ramesh Chandra

    dear Sir,
    Holding a defence/ salery account with icici, already submitted KYC details to the bank. Bank authorities want again KYC submission, moreover i am in port blair where there is no bank available. These people are becoming very uncomfortable for me. Please suggest or else will quite

    Reply
  8. koushik

    hi ,
    due to faults from hdfc credit card account , i stopped giving payments back to credit card , account . they also stopped calling me .I want to know , whether it will affect my KYC in near future , when i take home loans or anything like that

    Reply
  9. chitra kumar gurung

    sir,
    pliz guide me how can i change my communication /mailing office address of KYC.becuse we keep moving after every 3 years.

    Regards,
    Chitra kr Gurung

    Reply
    1. Naveen Post author

      I think if you are making new investments on the changed address, they will not honor it. You need to submit another form for update. If you are not making any investments while in the new address, there is no need to update the address.

      Reply
  10. bharat

    Hi Naveen,

    What is KYC acknowledgement letter. How can we get it online.

    Regards,
    Bharat A

    Reply
    1. Naveen Post author

      I never got one. What is the need of it. While investing, they check it online and confirms that KYC is done. They never ask for a physical copy.

      Reply
      1. bharat

        Hi Naveen,

        Some of the MF houses requesting to attach KYC acknowledgement letter. I downloaded forms as new investor to invest in DSP BR Top100 fund in the forms they ask for KYC acknowledgement letter. I have done my KYC verified a year ago but never got an acknowledgement letter too.

        Regards,
        Bharat A

        Reply
        1. Naveen Post author

          I have done through Way2Wealth, but they never asked. Now, I got a trading account with ICICI to invest online, which is a paperless process.

          Reply
  11. Priya

    Dear Navin,
    I have done BSc. Microbiology. I would like to do Medical Transcription. Where do I learn how to do that and what would be the cost.
    Awaiting your reply.

    Reply
  12. Sunil

    Dear Navin,
    I have a basic dobt, How do we know what address is present in the KYC that has been verified.
    Cause for me to invest NEW i need to fill some forms for an AMC, so i should not mess up with the information given on KYA.

    How do i know the Address.

    Please Help.

    Reply
  13. Bithika

    I am not able to check the status of my KYC. It keeps saying Invalid code and i tried it 5 times. Was it working for you? Please advise.

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *