What are the Documents Required for KYC?

KYC or ‘know your customer’ is a mandatory verification procedure carried out by any banks, financial institutions, and other Indian organisations with the goal of minimising illegal activities like money laundering. Since the year 2004, the Reserve Bank of India has made it illegal to allow any individual or entity to open a bank account, trading account or demat account without fulfilling the procedure for KYC. Not only is KYC verification an incredibly easy and standardized way to verify the identity of a customer, but it is also just a one-time step needed before one can carry out their financial transactions.

Essentially, to be able to carry out any financial transaction one will have to go forth with KYC. When you get your KYC verification process done, you have given the financial institution who has conducted the test information about your identity, address, and financial history. This can aid the bank in knowing that the money you chose to invest was not one so for any illegal or money laundering related purpose.

This brings us to the procedure required to carry out KYC verification. A certain list of documents required for KYC need to be secured beforehand so one can go through their KYC verification without any hiccups. Even when one is trying to invest in mutual funds for the first time, or for the first time through an organisation, they will be required to undergo the KYC verification process. This process at most will take one day after which one can go forth with their mutual funds investments. However, ensure you keep the following KYC documents handy before proceeding.

KYC documents list

The following list of documents is required to complete one’s KYC verification procedure. These documents need to be submitted as hard or scanned copies depending upon the type of KYC one has selected to do. There are two broad sets of documents required for KYC: one’s proof of identity and their proof of address. Documents required for KYC for identity and address proof can overlap, but they generally vary. The documents required for KYC are as follows:

1. KYC documents for Identity Proof

• The UID or unique identification number that comes with one’s Aadhar card. One can also use their voter ID, passport, or driving license. 
• One’s PAN card with their photograph
• An identity card or essential document bearing the photo of the applicant. Keep in mind that the document needs to be issued by the State or Central Governments, their departments, or any Regulatory or Statutory bodies.
• An identity card that is issued by scheduled commercial banks, public sector undertakings, or any public financial institutions is also valid. 
• Finally, identity cards that are issued by one’s college, provided that college is affiliated with Universities, or any identification document provided by professional bodies like the ICWAI, ICAI, Bar Council, ICSI, etc. to their students is also considered a valid KYC identity card.
• Any credit or debit card issued by a bank to an individual bearing the individual’s name and address is also considered as a valid KYC document.

2. KYC documents for Address Proof

• Voter’s card/Passport/Driving License/ Registered Sale Agreement or Lease on one’s residence/Maintenance bill for one’s flat/Copy of an insurance.
• Bills for utilities are also considered valid address proof for KYC. This includes one’s electricity or gas bill, their telephone bill, and their bill for water consumption. Keep in mind that these bills must not be more than three months old.
• A self-declaration provided by the supreme or high court judges that gives the applicant a new address as per their own accounts is required in case the applicant is convicted for any reason. 
• Address proof for KYC can also be issued by any of the following entities: the bank managers of Scheduled co-operative banks/scheduled commercial banks/ Gazetted Officers/ Multinational Foreign Banks/Notary public/Documents issued by any Statutory Authority or government/any representatives that have been elected to the Legislative Assembly or Parliament.
• Address proof for KYC can also be issued on an identity card by any of the following entities: the following: Statutory/Regulatory Authorities, Public Financial Institutions, Public Sector Undertakings, Central and/or State Government or any of its Departments, Scheduled Commercial Banks.
• Finally, identity cards with the address printed on them that are issued by one’s college, provided that college is affiliated with Universities, or any identification document provided professional bodies like the ICWAI, ICAI, Bar Council, ICSI, etc. to their students is also considered a valid KYC document.
• For any sub account or FII, the Power of the Attorney that is given to the Custodians by the FII/sub-account with the registered address needs to be taken. Custodians need to be duly notarized and/or consularized for the same. 
• Address proof for KYC in the name of one’s spouse is also accepted as a valid KYC document.

Types of KYC verification

Now that we know the RBI KYC documents list, there are two types of KYC verification processes. This variety is for the reason that the government wishes to ensure that every customer with a bank account has to go through the KYC process. Both are equal in terms of their authenticity and it is simply a matter of convenience whether one chooses to opt for one type over the other. 

The first type of KYC verification is Aadhaar-based KYC. Aadhar based KYC is a verification process that can be carried out online, making it highly convenient for those with an internet connection. As the name suggests, one needs to upload a scanned copy of their original Aadhar card for this type of KYC. Suppose one wishes to invest in a mutual fund. With Aadhar based KYC the opportunity to do so is only up to ₹50,000 a year. If one wishes to invest more in mutual funds per year, they will be required to carry out an in-person verification KYC. 

Unlike the online verification mode detailed earlier, in-person KYC verification is carried out offline. To do so, the customer can choose to visit a KYC kiosk, or mutual fund house and authenticate their identity using Aadhar biometrics. One can also call the KYC registration agency to send an executive to their home or office to carry out this verification. Some mutual fund houses also offer in-person verification mutual fund KYC via video call where the customer is required to display their original Aadhar card and address documents.