The A-Z of KYC and why does Sqrrl need my KYC details?

Do you have a bank account? Have you invested in Mutual Funds? Do you remember giving your credentials to your bank for the same? 

If your answer is ‘Yes’ to these questions, you have undergone KYC.

Know your Customer or KYC is the simple process of obtaining your financial information for many bank- related and investment purposes. If you wish to invest in Mutual Funds, it is mandatory that you have completed KYC formalities.

The basic objective of KYC is to simplify the financial and investment processes. You will not be required to provide your details over and over, several times. If you are KYC-certified, all your future investment transactions become easy and simple. This is because all the financial intermediaries like mutual fund companies, banks, etc. will have a database of your information to access from. This will also prevent duplication of your information and also keep it secured.

This is especially true in the current era of online fintech apps ruling the investment sphere. A few simple clicks, and you can get KYC-certified and start investing immediately from the comfort of your home without any hassles. 

As for your bank, it will help them to validate your identities. Banks and other financial institutions need KYC to understand your financial credibility and also for authentication and authorization. KYC is also used to check whether you are engaged in any shady activity like money laundering.

It was introduced with the purpose of curbing black money and serve as an anti-money laundering scheme. Most KYCs only require basic information such as Aadhar number, name and some basic personal information. You only need KYC as a first-time investor. Post that, it’s a smooth journey for all further applications and processes.

KYC and Mutual Funds

You need to be KYC compliant in order to invest in Mutual Funds. If you wish to check your KYC status, you can easily do so online. All you require is your PAN Card number. You can check your status at the official site of KRA (KYC Registration Agency) like CAMS etc.

However, if you are a regular investor, you will already have completed your KYC formalities. Hence, there is no need for you to undergo the same process again. If you are new to KYC, you will require the following documents –

1. A KYC form with complete details and a passport size photograph
2. An ID proof. Any identity proof such as your like PAN Card, Passport, Aadhar Card or Bank Passbook will work.
3. Proof of Address– Residential address proof in the form of your Ration Card, Aadhar Card, Driving License, etc. is mandatory.

That’s all! 3 simple documents and you are done. 

You can also choose from a variety of ways as to how you want to complete the KYC Process. If you wish to complete the process offline, here is what you have to do,

• Download the KYC Form from the CDSL site.
• Submit the physical copy of the form along with all the details and document proof to the intermediary
• This intermediary will be the person who shall conduct all Mutual Fund processes on your behalf.
• The intermediary will initiate the process on your behalf.

Another simple way is to complete the process online. All you have to do is,

• Create an account on any of the sites of KRA (KYC Registration Agencies) like CAMS, NDML, etc.
• Provide your mobile number and Aadhar card number. This number is required for OTP Verification.
• Upload a self-attested copy of your Aadhar card for your e-KYC.
• Once that is done, your KYC is complete!

Apart from all this, online investment apps such as Sqrrl, also allow you to get KYC-certified in a hassle-free manner with a few simple steps. And for those who prefer to have an Aadhar based KYC, you can easily do the following,

• You can request to meet an official from the Mutual Fund house you are investing in or from a KRA agency to visit you.
• Submit a copy of your Aadhar to them.
• They will scan your fingerprints i.e. biometrics and upload them on the database.
• This will ensure that every time your fingerprints are scanned, your details will show up.

It is important to complete your KYC formalities at the earliest. It is a simple process that does not entail many complexities and which can be completed in a matter of minutes.

A word for all the investors out there!

You can invest up to Rs 50,000 in any Mutual Fund with your e-KYC. If you wish to make investments above Rs 50,000, you will require an in-person verification. Hence, it is better to complete all your KYC formalities at the earliest. Getting KYC-Certified is simple and convenient. Get KYC-certified once and begin your investment journey to strengthen your monetary foundation.

Get KYC-Certified now!

Sqrrl is a savings and investment app that is designed to help you grow into the habit of saving and attain the ultimate goal of financial fitness. And to help you get the best out of your money, we need to serve you to the best of our ability. Which requires us to verify your identity from a compliance perspective. We’ve made a really cool infographic video to help you understand it all. In this Video You learn how to do pan kyc in sqrrl app

Please wait for the video to load.

Tell us if you have any other query and we’ll be more than happy to help you out! Drop a comment down below, or mail us at happy2help@sqrrl.in.