KYC Requirements — CKYC, In-Person Verification

KYC is the gatekeeper of every mutual fund transaction — no KYC, no investment. With the evolution of CKYC and eKYC, the process has become far smoother than the paperwork-heavy system of earlier years, though compliance requirements are stricter than ever. Here is the complete picture. Every investor must be KYC-compliant before their first mutual fund purchase. The primary document is PAN (Permanent Account Number) — this is mandatory for all investments. However, there is an important exception: for investments below ₹50,000 in a rolling 12-month period, PAN is not required (PAN-exempt category). In such cases, any valid government-issued photo ID works. CKYC (Central KYC) is now the primary KYC mechanism for the financial sector. Once an investor completes KYC with any financial institution (bank, AMC, broker), the KYC record is uploaded to the CKYC registry maintained by CERSAI with a unique 14-digit KYC Identification Number (KIN). Any other financial entity can verify KYC using this KIN — no need to submit documents again. KRA-KYC (through KYC Registration Agencies like CAMS KRA, KFintech KRA) also remains in operation for the securities market. eKYC uses Aadhaar-based authentication (OTP or biometric) for quick verification, and SEBI permits eKYC investments of up to ₹50,000 per year per AMC for individuals. For higher amounts, full KYC is required. In-Person Verification (IPV) is an important step — it confirms that the person submitting the application is indeed the same person whose documents are attached. Notably, IPV can now be completed via video KYC as well, in addition to physical verification. SEBI allows AMFI-registered distributors to perform IPV, which is a significant operational advantage for MFDs and sub-brokers.