Demonetisation or not, KYC is key to smooth banking. Check KYC status, be compliant & update details

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Published: December 23, 2016 12:07:17 PM

People who do not have the relevant documents to verify their identity remain Non-KYC customers and then they face issues while depositing and withdrawing cash. It is, therefore, better to be a KYC-compliant customer and enjoy the banking services without any hassle.

KYC, KYC-compliant customer, how, banks, new account, kyc norms, kyc status, kyc updates, kyc details, Customer due diligence (CDD), Voter ID card, Aadhaar Card, Driving Licence, PAN Card, NREGA Card, CVL KRA, NDML KRA, DOTEX KRA, CAMS KRA, KARVY KRA, PoA holder and investors.The common curiosity amongst the people after demonetization is how to become a KYC-compliant customer?

Many times while opening a new account, banks make it necessary to fill the KYC form along with necessary details required as per the bank. But people who do not have the relevant documents to verify their identity remain Non-KYC customers and then they face issues while depositing and withdrawing cash. It is, therefore, better to be a KYC-compliant customer and enjoy the banking services without any hassle.

The common curiosity amongst the people after demonetization is how to become a KYC-compliant customer? If you are still not a KYC-compliant customer, go to your nearest bank or any financial institution you are dealing with along with a passport size photograph and necessary identity and address proofs and get yourself registered under KYC norms.

 
What is KYC?

KYC stands for ‘Know your customer’. Every financial institution has the right to know who is dealing with them. Customer due diligence (CDD) is a mandatory measure taken up by every financial institution, intermediaries, banks, to obtain proper information in order to identify the person and help them in managing risk.

For prevention of frauds, theft and money laundering, KYC is necessary for everyone whether the person is a non-individual investor i.e. companies, partnership firms, trusts, HUF etc., Non-Resident Indians or any investors coming through channel distributors.

Why is KYC needed? What are the documents required to be KYC compliant?

For accepting, identifying and monitoring the transactions, a person has to be a KYC compliant. A number of relevant document/s are needed for registering KYC. Any one of the documents for identity proof and address proof is required for becoming a KYC-compliant customer.

1. Voter ID card
2. Aadhaar Card
3. Driving Licence
4. PAN Card
5. NREGA Card

To validate yourself by becoming a KYC-compliant customer, you need to submit the form of KYC in your bank or financial institution you are dealing with.

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What is a KRA? How can we check the KRA status?

KRA stands for “KYC Registered Agency”. To avoid duplication of KYC and doing multiple times of KYC for every investment these agencies are formed for maintaining centralised data where you need not have to re-register yourself again and again for every other investment. Once your details are verified and completed, that will be get uploaded on KRA website and your KYC is done. You will get registered in any of the agency for becoming a KYC-compliant customer. Some of the registered agencies are CVL KRA, NDML KRA, DOTEX KRA, CAMS KRA, KARVY KRA.

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You can check your KRA status by visiting the website  https://www.cvlkra.com/kycpaninquiry.aspx. You need to enter either your PAN card details or your name, date of birth and exempt category.

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Any investment made by minor, his/her KYC requirements needs to be fulfilled by his/her guardian. If somebody is holding Power of Attorney on behalf of any investor, then KYC requirements have to be compiled with both PoA holder and investors.

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