KYC becomes easier for mutual fund investors; Here’s how to do

Under this new service, trained employees of the post office will help investors to fill the KYC form, get the required documents self-attested, verify proof of identity and address (such as Aadhaar, PAN, electricity or water bill) and deliver them to asset management companies (AMCs).

New Delhi: Nowadays millions of investors investing in mutual funds. To investing in mutual funds there is need to do KYC (Know Your Customer). Earlier people find this process difficult, however now process has become even easier for investors, reports Dynamite News correspondent.

According to a press release issued on 17 July a Memorandum of Understanding (MoU) has been signed between the Department of Posts (India Post) and the Association of Mutual Funds in India (AMFI).

Under this agreement, now more than 1.64 lakh post offices across the country will provide KYC verification and document collection service for mutual fund investors.

Post Office Will Help Investors

Under this new service, trained employees of the post office will help investors to fill the KYC form, get the required documents self-attested, verify proof of identity and address (such as Aadhaar, PAN, electricity or water bill) and deliver them to asset management companies (AMCs). With this, investors will not have to visit banks or other financial institutions again and again.

What Is KYC?

KYC i.e. “Know Your Customer” is a process in which the identity and address of the investor is confirmed. It is mandatory to protect against financial fraud, money laundering and fake accounts. It requires PAN card, Aadhar card, passport and proof of address.

New Rules Of nKYC (effective from 1 April 2025)

Now PAN and Aadhar verification has become mandatory for investing in mutual funds.

If KYC was done earlier without these documents, then the process will have to be done again before new investment.

This rule applies to all old and new investors.

KYC Process

The investor has to submit the following documents:

• Proof of identity: PAN card is mandatory
• Address proof: Aadhaar card, passport, voter ID, electricity bill etc.
• Provide photo and signature
• Recent passport size photo
• A signature that matches your other documents
• Filling the KYC form
• Personal details like name, date of birth, occupation, income limit etc. have to be filled
• In-person verification (IPV)

How To Do KYC?

Offline method: You can fill the KYC form by visiting the nearest registrar and transfer agent (like CAMS or KFintech) or the mutual fund company's office.

How To Check KYC Status?

• Go to the website of your mutual fund company or registrar (eg CAMS, KFintech).
• Select the “KYC Status” option.
• Enter your 10-digit PAN number.
• The status will appear on your screen as “Validated”, “Registered”, “On Hold” or “Rejected”.

Relief To Investors

This new facility will especially provide relief to those investors who live in small cities, towns or rural areas and for whom digital KYC or bank visits are difficult. This initiative will promote financial inclusion and make investing in mutual funds more accessible.