KYC
Know Your Customer (KYC) is a standard process used by financial institutions to verify the identity and address of their clients. It helps prevent fraud, money laundering, and illegal activities by ensuring that investments and transactions are made by verified individuals. Completing KYC is essential before investing in mutual funds, opening a bank account, or using other financial services.
Understanding CKYC and Its Importance
Central Know Your Customer (CKYC) is a mandatory process that helps financial institutions verify the identity of investors before allowing them to invest in mutual funds or other financial instruments. It involves collecting and maintaining personal identification details, such as proof of identity and address. Once completed, the CKYC process is valid across all mutual funds, meaning investors don’t need to repeat the process for each new investment. This system streamlines compliance and enhances security for both investors and financial institutions.
Documents Required and How to Complete CKYC
To complete your CKYC, you must submit proof of identity—such as a PAN card, passport, driving license, or voter ID—and proof of address, which may include recent utility bills, bank statements, or official IDs like Aadhar or passport. A passport-sized color photograph is also required. NRIs need to submit their passport and overseas address proof. The documents must be submitted to a KYC Registration Agency (KRA) like CAMS or Karvy, and in-person verification can be done at an AMC branch. For NRIs, verification can also be conducted by authorized overseas officials, Indian embassies, or notaries.
