what is meaning of kyc?
KYC stands for Know Your Client/Customer is a term used for client/customer identification. Financial institutions need to know who the customer is, need to verify the address, and know about the financial and occupational status. It is mandatory that investors have to be KYC compliant if they are investing more than 50,000 in mutual funds. The provisions of The Prevention of Money Laundering Act, 2002 (PMLA), has made it mandatory for all Mutual Funds to comply with the KYC norms of the applicants desirous of subscribing to their ‘units.’
For this process, CDSL Ventures Limited (CVL) has been formed by the Mutual Fund industry to create the necessary infrastructure to handle the KYC on behalf of the Mutual Fund Industry. CVL is handling the work of “Customer profiling and Record Keeping” for issuance of Know Your Client (KYC) acknowledgment to mutual fund investors.
How to update the KYC?
KYC is linked to your PAN and you don’t need to fill KYC form for every mutual fund you are subscribing for. Just do it once and it will available for all you investments that is the biggest advantage of having updated the KYC in CVL.