MF KYC deadline: Complete this task by March 31 to continue investing in mutual funds

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New Delhi: Mutual fund investors are required to complete KYC by March 31, 2024 to avoid a block on their investment in preferred schemes. To be sure this deadline applies to investors whose acocunt is not backed by “officially valid documents.”

Failing to complete KYC by March 31, 2024 will result in their investments into MFs getting blocked starting from April 1, 2024. This is likely to impact:

Systematic investment plans
Systematic withdrawal plans
Scheme redemptions

List of officially valid documents for MF KYC

The list of officially valid documents for MF KYC includes:

Aadhaar Card
Passport
Voter ID card
Driving license
MGNREGA job card

The following documents will not be valid as KYC proof from April 1, 2024:

Bank statements
Power utility bills

Why is MF KYC required again?

MF KYC is required again for investors who did not produce officially valid documents while opening their account. This is a step in the direction towards transparency and keeping a check on money laundering.

To check whether your documents are officially valid, check with your mutual fund house or RTA.
The KYC registration process can take up to 21 days.

“KYC compliance is mandatory under the Prevention of Money Laundering Act, 2002 and Rules framed thereunder,” according to the Association of Mutual Funds in India (AMFI). Investors who wish to redeem mutual fund units from pre-KYC era must complete KYC and submit PAN is they wish to redeem their holdings,

How to update MF KYC?

MF KYC can be redone by submitting a physical form with officially valid documents to the concerned mutual fund operator or registrar and transfer agent.
Once the document is submitted, it will be shared with KYC registration agencies which will update the information from the back-end for all MF accounts linked to a PAN number.
There is no provision for online KYC of users whose accounts are not backed by officially valid KYC documents.

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