What is KYC?
KYC – Know Your Customer/Client is the phrase that is generally utilized for the identification of the customer/Client. Generally it is the need of the Financial institutions that they have to know about there customers and they have the need of verification of the address, occupational status and the financial condition of there customer/client. In case any customer is investing the money in the mutual funds that is above 50000.00, in that case it is necessary for that customer that he must be KYC compliant. As per the norms of the Prevention of Money Laundering Act, 2002 (PMLA), it is compulsory that all the customers who wants to subscribe for the units of mutual funds must be KYC compliant.
For the execution of this procedure the industry of the Mutual Funds has developed the CDSL Ventures Limited (CVL) so as to develop the infrastructure that is necessary and can tackle the KYC on the bases of the industry of Mutual Funds. CVL is tackling with the job of “Record keeping and Customer profiling” that is issuing the acknowledgments of KYC to the customers who are investing money in the Mutual Funds.
How to Update the KYC?
First off the form of KYC is to be downloaded by visiting http://www.sbimf.com/sbi_kyc/images/Form%20for%20Individual.pdf. Than you have to take the print of it and fill it. After filling it you have to attaché the address proof as well as the ID proof and than submit it at the desk of the Investor service at your bank/service point of CVL/service provider of trading.
There is no need to comply with the KYC forms on every purchase of mutual Funds as your PAN is linked with the KYC. After doing it once it would remain attached for ever in case of all your further investments and this is one of the biggest advantages if the KYC has been updated in CVL.
How to check the KYC status?
Visit the website of CVL http://www.cvlindia.com/ and then click on “Inquiry on KYC.” Then you have to enter the PAN and after that your application status can be seen.