KYC

Full form: Know Your Customer

Banking

KYC is the mandatory process by which banks, financial institutions, and mutual fund companies verify the identity and address of customers before providing financial services. It is required by RBI and SEBI as part of anti-money laundering compliance.

In detail

KYC requires: identity proof (Aadhaar, PAN, passport, voter ID), address proof, and a photograph. Aadhaar-based eKYC has made the process largely digital and instant in India.nnCentral KYC Registry (CKYC): Once you complete KYC with any SEBI-registered entity, your data is stored centrally with a 14-digit KYC Identifier Number. This allows a single KYC to be used across all financial institutions -- no need to redo KYC when opening a new account.

Real-life example

🇮🇳 India example

Arjun completes KYC with Zerodha. His CKYC record is created with a unique 14-digit number. When he later opens a mutual fund folio with HDFC AMC, they verify his CKYC record -- he does not need to submit documents again. This central registry eliminates repetitive KYC paperwork across the financial system.

Frequently asked questions

What documents are needed for mutual fund KYC? ▼

PAN card (mandatory), Aadhaar (for address proof via eKYC or biometric), and a passport-size photograph. Minor children require parent or guardian documents additionally. NRIs need passport, overseas address proof, and foreign bank account details.