June 07 , 2012
KYC is compulsory for investing in mutual funds. Follow the link https://www.cvlkra.com/kycpaninquiry.aspx to check whether you are KYC compliant. Usually it takes few weeks to get updated.
One of the things Indian Government is worried about is illegal money being parked in the system - in banks, mutual funds, shares, etc. To counter this, it insists on identifying every customer who invests money in these places. If anything suspicious is found, the customer is then easily traceable. The set of procedures that are followed for this purpose are collectively known as Know-Your-Customer (KYC) norms. They are typically one-time processes, and exist in banks, funds, share markets, etc (even if known by different names).
The term KYC itself has come to be associated more with mutual funds.
The KYC is a simple one-time process, as described in the Procedure mapped below. It only requires a photograph, the PAN card and a proof of address to be provided.