PAN Card KYC

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.

KYC with PAN Card

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.

When is PAN Card KYC Required?

• Setting up a new bank account.
• When you apply for a loan, a credit card, or a debit card.
• If you are considering investing in a mutual fund.
• Opening a bank locker.
• If there are any modifications to be made in terms of beneficiaries or signatures.

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.

How to Check eKYC PAN Card Status Online?

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.

• Visit the Central Depository Service Limited’s website at https://www.cvlkra.com/kycpaninquiry.aspx.
• You can use your date of birth or PAN card to verify the status of your KYC.
• Enter your PAN card information and press the submit button.
• If the KYC has been validated, the status will be MF-Verified by CVLMF.
• However, if the KYC is validated, the status will be ‘Pending.’

Importance of PAN Card KYC for Mutual Fund Investments

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.

Documents Required for eKYC of PAN Card

Along with their Know Your Client application form and a passport-sized photograph, investors must submit the following papers.

• ID Proof: PAN Card, Driver’s License, Passport photocopy, Voter ID, or bank passbook.
  
  
• Proof of Address: Recent landline or mobile bill, recent energy bill, passport copy, recent Demat account statement, latest bank passbook, ration card, Voter ID, rental agreement, Driving License.
  
  
• Available KYC Procedures: CDSL Ventures Limited has been recognized and authorized by the mutual fund industry to carry out the Know Your Customer procedure. You can finish the procedure either offline or online.

PAN Card KYC Offline Process

• Fill out the KYC application form available on the CDSL Ventures website.
  
• Sign and provide a physical copy of the form to the authorities or intermediaries with whom you intend to invest in mutual funds.
  
• Attach certified photocopies of ID and residency evidence, as well as a passport-size photo, to the form.