PAN Card KYC, or Know Your Customer, is a method for businesses, particularly banks, to get to know their consumers. Banks will have access to your Aadhaar data, as well as your fingerprint and digital signature, through the KYC process. This is all done with your permission and is necessary for enhanced security.
The primary goal of KYC is to avoid internet fraud, money laundering, and identity theft. Banks now have more access to your details, personal information, and financial records, allowing them to monitor all types of activities in your account. According to the RBI rules, all of these characteristics are within the bank’s regulatory and legal framework.
A PAN card is one of the papers that must be provided as part of the KYC process. You must present your PAN card as proof of income and identification to validate your identity and that you are a tax-paying citizen of the nation.
The Income Tax Department of India issues you a PAN card, which allows you to file your taxes and tax returns to establish that you are above the tax band and a regular tax-paying citizen of the nation. A PAN card is required for the majority of your financial operations, such as establishing a bank account, investing in mutual funds, and so on.
Another situation in which your KYC is required is when your prior papers stored by the bank are insufficient. Banks will send a representative to collect the essential information for extra evidence and security via KYC.
After you’ve submitted all of your papers and the KYC form online, follow these steps to verify the progress of your PAN Card KYC.
KYC’s major goal is to ensure that deposits/investments are made in the name of a real person. It also aids in the reduction of black money. As a result, all mutual fund investors must follow the KYC procedure through a KYC Registration Agency (KRA). KRA, a SEBI-registered company, stores investor data in a single database to which all fund companies and intermediaries have access.
Most investors are familiar with the agencies CAMS, NSE, and KDMS. SEBI later introduced a standardized Know Your Client approach to ensure consistency and uniformity across SEBI-registered intermediaries. Portfolio managers, mutual fund firms, venture capital funds, and stockbrokers, among others, found it simple to prevent the duplication of KYC papers. Investors will find it simpler to comply as a result of this.
Along with their Know Your Client application form and a passport-sized photograph, investors must submit the following papers.