March 31 is the deadline to redo mutual fund KYC: Here's who needs to act and how

The deadline for mutual fund (MF) investors to redo their KYC (know your customer) verifications will end on March 31, 2024. Registrar and transfer agents (RTAs), CAMS (Computer Age Management Services), and KFin Technologies (KFintech) have issued emails to mutual fund distributors (MFDs), stressing the need for action.

It must be noted that failure to comply by March 31, 2024, will result in restrictions on mutual fund transactions effective April 1.

This includes SIPs (systematic investment plan), SWPs (systematic withdrawal plan), and redemptions.

Investors whose KYC is not based on any of the 'officially valid documents' should do this by March 31.

Officially valid documents include an Aadhaar card, passport, and voter ID card.

KYC based on proofs such as bank statements and utility bills will no longer suffice post-deadline.

Additionally, ambiguity persists regarding certain documents like driving licenses for KYC purposes.

While CAMS indicates the need for resubmission, Kfintech lists driving licenses as valid documents.

To determine whether re-KYC is necessary, investors should consult the Central Depository Services Limited (CDSL) Ventures Limited - Know Your Customer Registration Agency (CVL KRA) website or contact mutual fund houses or RTA helplines.

However, it's important to recognise that re-KYC cannot be completed online.

Redoing KYC requires submitting a physical KYC form along with the documents to mutual fund houses or RTAs.

Subsequently, this information is relayed to KYC registration agencies (KRAs), ensuring that the updated KYC details are reflected across all mutual fund investments linked to the investor's Permanent Account Number (PAN).