The April 1 deadline for mutual fund (MF) investors to update their KYC (know your customer) compliance if they didn’t meet specific conditions has come and gone. Numerous mutual fund investment accounts were marked for re-KYC, necessitating completion by April 1, 2024. Failure to do so would have resulted in their folio being frozen.
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This exercise was primarily prompted by changes to the list of officially valid documents (OVD). Previously, bank statements and utility bills served as OVDs for mutual fund investment accounts, but they are now invalid.
The subsequent inquiry revolves around whether the re-KYC process can be undertaken through online channels or offline methods, adding to the complexity of the situation.
Who Needs To Do Mutual Fund Re-KYC Online?
People who have connected their Aadhaar with Permanent Account Number (PAN) and have their mobile number linked to their Aadhaar can complete the re-KYC process online. With these two conditions met you can likely update your KYC online through your mutual fund provider’s platform
Aadhaar Linked with PAN: This is the key factor. If your Aadhaar card is linked to your PAN, the process becomes much simpler. Aadhaar allows for online address verification, a crucial step in re-KYC.
Verified Mobile Number: Having a mobile number registered with your Aadhaar that receives verification codes is also important for the online re-KYC process.
Who Needs To Do Mutual Fund Re-KYC Offline?
If you haven’t linked your Aadhaar card with your PAN card, you most likely cannot update KYC online. Aadhaar simplifies address verification, which is crucial for re-KYC.
Also, if your existing KYC information has discrepancies or missing details, an online update might not be possible. Offline submission with document verification at a KRA office may be required.
To avoid repeating the KYC process, individuals must utilise their Aadhaar, linked with PAN, to complete the re-KYC online and invest in both existing and new investment folios.
Consequences of Not Completing Mutual Fund re-KYC
If you hadn’t done your mutual fund re-KYC by the April 1, 2024 deadline, your mutual fund folios (investment accounts) might have been frozen. This means you wouldn’t be able to buy or sell units, switch between funds within the same investment house, or redeem your investments.
Completing your re-KYC is important to ensure uninterrupted access to your mutual fund investments and avoid any potential complications.
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