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PAN Card KYC - Significance, Verification, PAN KYC Status and More

TeamAckoNov 7, 2024

Know Your Customer, or KYC, can be called the financial world's superhero with the power to reveal hidden identities and expose the financial underworld. In 2002, the Reserve Bank of India started the KYC to keep a watch on money launderers, tax evaders, corrupt officials, and even terrorist financiers. By 2004, the RBI issued a firm decree to all banks to become KYC compliant by 31 December 2005. Thus, banks and companies emerged as the champions, rallying behind KYC fervently.

KYC soon became the enforcer of transparency and the guardian of financial integrity. It has become the financial world's relentless watchdog, ensuring that the rules are followed and the non-followers are exposed. Here is a quick look at the PAN Card KYC, it’s significance, how to check PAN Card KYC status and more.

Contents

Important Purposes Of KYC
Significance Of PAN Card In KYC
Documents Required For PAN KYC
Online Method to Verify PAN Card KYC
Offline Method to Verify PAN Card KYC
Steps to Check PAN KYC Status
Wrapping up!
Frequently asked questions

Important Purposes Of KYC

To invest in mutual funds
To Apply for a credit card/loan
To open a bank locker
To start a bank account
To change beneficiaries/signatories
To get a new mobile number

Significance Of PAN Card In KYC

It is essential to complete the KYC process promptly, with a PAN card being a key component for the following reasons:

According to government regulations in India, possessing a PAN card is mandatory for all income-earning individuals and non-individual entities.
The primary aim of having a PAN is to establish and authenticate the identity of individuals and entities engaging in financial transactions.
Using PAN for KYC updates is essential because it is a crucial document to verify the holder's identity and prevent potential discrepancies.
PAN cards provide insights into crucial financial activities such as salary deposits, high-value asset purchases, etc.

Documents Required For PAN KYC

You require the below-mentioned documents along with the KYC form for identity and address proofs for PAN KYC:

Identity Proof: Copy of Passport, Bank Statement, Voter ID, PAN Card, Driving License, or Aadhaar Card
Address Proof: Driving License, Aadhaar Card, Recent Electricity Bill, Ration Card, Rental Agreement, Latest Mobile or Landline Bill

Online Method to Verify PAN Card KYC

PAN KYC online is the easiest way to complete the KYC process. You'll need an Aadhaar card to do this.

Go to the SEBI website and log in.
Click on 'Know Your Customer Registration Agency.'
Register and complete your profile.
Enter your PAN and Aadhaar details.
Submit a self-certified copy of your Aadhaar card.
Submit the form online.
You will get an OTP or one-time password on your registered cell phone number.
Use this OTP to verify your account.
Ensure you use the same mobile number for OTP, as it will be linked to your Aadhaar and PAN. Be careful not to reveal the OTP to anyone.
If needed, you can later update your registered mobile number at government-authorised Aadhaar and PAN centres in person.

Offline Method to Verify PAN Card KYC

Offline PAN card KYC is just as reliable as the online process.

Visit the CDSL Ventures website and download the Know Your Customer form to your computer.
Fill in the details of all the fields necessary and sign the form.
Attach a copy of your PAN card and a self-attested proof of address. You can also get your address attested by a third party, although it's not mandatory as you must submit proof of address.
Accepted proof of address includes government-issued documents like a Voter ID, Passport, or Aadhaar card.
Affix a passport-sized photograph to the designated space on the application.
Take the completed form to a bank branch for physical verification by bank staff to update your KYC information.

Steps to Check PAN KYC Status

Once you have submitted the KYC forms online, you can quickly check the PAN card KYC status. Follow the steps below:

Go to the CDSL KYC enquiry page: https://www.cvlkra.com/default.aspx.
Enter your PAN number or name, date of birth/incorporation, and exemption category.
Click on Submit.
If your KYC is verified, the status will be 'MF - Verified by CVLMF.'
If your KYC is not verified, it will display 'Pending.'
You can take a printout of the status if required.

Wrapping up!

The PAN card KYC process is vital to India's financial landscape. It ensures transparency, authenticity, and accountability in financial transactions, safeguarding against fraud and illegal activities. Whether completed online or offline, KYC compliance is essential for both individuals and businesses, promoting a robust and trustworthy financial ecosystem. As technology constantly evolves, all stakeholders must stay informed in this ever-evolving journey towards secure and responsible financial practices.

Frequently asked questions

Below are some of the frequently asked questions on PAN Card KYC

According to the RBI, what are the components of KYC?

As per RBI guidelines, KYC consists of the following four components:

Risk Management – Describes methods for managing customer credit risk.
Customer Acceptance Policy – Outlines the policy for customer registration.
Transaction Monitoring – Explains how transactions are monitored.
Customer Identification Procedures – Details the procedures for customer identification.

Where can I obtain the KYC form?

The KYC form can be obtained through your financial advisor, bank, broker, or online on the website of a mutual fund company.

How can I check if my PAN card is KYC-verified?

Use your date of birth or PAN card to check your KYC status. Enter the necessary information and submit it. If verified, the status will be 'MF-Verified by CVLMF.' If not, it will be 'Pending.'

How long does it take to verify KYC?

KYC verification and registration with the KRA typically take 7-15 days.

Is there a fee to know my PAN KYC status?

No, checking your PAN card KYC status is free; no fees or charges are required.

Who can verify KYC documents?

Various professionals can verify Your KYC documents, including post office personnel, bank officials, councillors, accountants, solicitors, and doctors.

Do I have to resubmit the KYC form if my address changes?

Yes. You need to submit the KYC form again if there is a change in your address or other important identity details.

In the realm of KYC, how is a customer defined?

In the context of KYC regulations, a customer is described as an entity or an individual who holds an account or maintains a business relationship with a bank.

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on several secondary sources on the internet, and is subject to changes.