KYC Full Form

KYC Full Form, i.e., Know Your Customer is a process carried out to authenticate the address and identity of the customer who intends to perform transactions like opening a bank account, investment in mutual funds, Fixed Deposit, etc. KYC is done by verifying the documents that are acceptable as Proof of Address and Proof of Identity of the customer. For instance, Aadhar Card, Voter’s ID Card, Passport, Driving Licence etc., are documents accepted both as Address Proof and Identity Proof. Once the KYC process is complete, the Central KYC Records Registry will provide a unique identification number known as the Know Your Customer Identifier.

It was made mandatory for the banks/financial institutions to complete the KYC Process for all the existing as well as new customers before offering any services to them.

The following are the Proof of Address and Proof of Identity that can be submitted to complete the KYC process.

Proof of Address

• Aadhar Card
• Voter’s ID Card
• Passport
• Driving Licence
• Registered Sale Deed or Lease Agreement
• Ration Card 
• Utility bills like telephone bill, electricity bill, gas bill, water bill (latest)
• Bank Account Passbook or Pass sheet (with three months entries)

Proof of Photo Identity

• PAN Card
• Passport
• Aadhar Card
• Voter’s ID Card
• Employer’s ID Card with Photo issued by Central/State Government Departments, PSUs, and Statutory Regulatory Authorities.
• Identity Cards issued by Education Institutions affiliated to Universities.

There are two types of KYC.

• Aadhar based KYC
• In-Person Verification

Aadhar based KYC

The KYC done online using the Aadhar details is online KYC or Aadhar based KYC. However, every time the Aadhar based KYC is done, the customer is allowed to invest only Rs. 50000/- per fund.

If the customer wishes to invest a higher amount, he/she should opt for In-Person Verification. The customer can also visit the KYC kiosk or the KYC Registration Agency for In-Person Verification of the KYC documents. The customer can also request the KRA official to visit the home/office for In-Person Verification.

The In-Person Verification can be done by displaying the original KYC documents through a Video Call to the Mutual Fund House. Once the IPV is done, the threshold limit of Rs. 50000/- for investment in a mutual fund will be relaxed. 
Offline KYC 
In the offline KYC process, a representative of the bank/financial institution will personally visit the customer to verify the KYC documents. A copy of the KYC documents have to be produced, and the representative will authenticate the profile of the customer to complete the KYC process. This KYC full form process is also known as In-Person-Verification (IPV).

The different ways of KYC process are

• Online KYC
• Aadhar Based Biometric Verification
• Offline KYC

Online KYC can be done in two ways.

• Aadhar OTP
• Aadhar biometric verification

In the Aadhar OTP method, the KYC will be completed in minutes, whereas in Aadhar Biometric Verification, the customer has to call the KRA to get one of the officials to visit either the home or office to do the biometric verification.

Simple steps in Online KYC using Aadhar OTP are given below:

• Access the official website of KYC Registration Agency (KRA)
• CVL, NSE, Karvy, CAMS and NDML are some of the KRAs
• Enter the details of the Aadhar Card.
• OTP will be sent to the mobile number registered with Aadhar
• Enter the OTP and click on the ‘Verify’ tab
• Submit your KYC application.
• KRA approves the KYC once it is verified with UIDAI.
• You can check the KYC status on the KRA website using your PAN.

If online KYC is done, customers are permitted to invest only up to a maximum of Rs. 50000/- in any fund. But if the KYC is done using Aadhar Biometric Verification or In-Person Verification, then the specification of the maximum limit of investment will be lifted.

• Visit the website of KRA or any mutual fund house.
• Perform online KYC by entering the Aadhar details.
• Then place a request for Aadhar Biometric Verification.
• An official of KRA or the Mutual Fund House will visit the address mentioned in the KYC form.
• Show him the original Aadhar Card and PAN and provide your biometric details.
• Your application will be submitted, and the KYC will be done.
• You can verify the status of KYC through the KRA website using your PAN.

The steps involved in the Offline KYC process is given below:

• Download the KYC form.
• Fill in the Form with details like Name, Date of Birth, Contact address and the details of the KYC documents being submitted.
• Enclose physical copies of the KYC documents mentioned in the form and submit them at the KRA Office.
• The KYC documents have to be self-attested.
• On authentication of the KYC documents by the KRA official.
• A KYC application number will be given that can be used to track the KYC status.
• There may be a need to provide the biometric details as well at times.

Aadhar Paperless Offline eKYC can be done using e-Aadhar that bears the digital signature of the competent authority of UIDAI. The e-Aadhar can be shared with any service provider or Offline Verification Seeking Entity (OVSE) by any Aadhar Cardholder. The e-Aadhar can either be in XML or PDF format. It can also be in a printed document in QR format.

• Steps to be followed for Aadhar Paperless Offline eKYC
• Visit the official UIDAI website.
• Go to ‘My Aadhar’ Section
• Under ‘My Aadhar’ select ‘Aadhar Paperless Offline eKYC (BETA) 
• Provide your Aadhar Number or Virtual ID
• Create a four-character share code.
• Enter the Captcha Code
• Enter the OTP sent to your registered mobile number and click on the ‘Verify’ tab
• A Zip file that is password protected containing the Aadhar Paperless eKYC will be downloaded. The four-character share code will be the password to open the Zip File.
• You can share the Zip File, Share Code and the registered mobile number with the service provider.
• The data in the Zip File will be compared with the information at the central Database to complete the KYC process.

On browsing through the above article, you will get to know the KYC Full Form, the importance of KYC and the different ways of carrying out KYC. You can adopt any method for KYC that is convenient for you.

Now nobody can stop you from investing funds within Rs. 50000/- or investing funds without limitation by performing the KYC as required for each kind of investment.