KYC is a comprehensive regularity policy created to prevent money laundering, identity theft, and fraud. Administered and overseen by the Unique Identification Authority of India (UIDAI), eKYC is an electronic version of standard KYC.
Instead of paper documents, this feature stores the digital versions of collected identity proofs of all individuals in an online database. It is entirely an online process and citizens can also check their KYC status across various websites.
Here is a detailed overview of the facility along with a few ways stating how to check KYC status online.
A brief overview of KYC online
The main objective of KYC online is to digitise the identification process and minimise any use of physical documents. Identity information is stored in a digital format. Note that such documentation is even mandatory if you want to invest money in mutual funds.
eKYC is regarded as a hassle-free feature as it eliminates the need to carry physical documents everywhere you go. It can also be utilised by authorized organizations that wish to verify an individual’s identity online.
The paperless identification process utilizes the Aadhaar platform to determine an individual’s identity. This feature is available to Aadhaar card users and is usually used by financial institutions to provide services to their customers, such as a credit card.
How to check KYC status online?
- Without registration
Different websites offer various ways to check your KYC status. Some of them require you to enter your PAN card, followed by captcha. After retrieving the information, the site displays your KYC status across all online KYC registration agencies.
- With registration
Other websites require registration before you can check the status. After successful registration, open the site and navigate towards the KYC status section. Enter your PAN number, name, and date of birth. Enter the captcha to view your KYC status across all authorised websites.
Types of KYC status verifications
KYC can broadly be divided into two categories –
- Aadhaar based KYC
In this process, customers verify their KYC online using their Aadhaar details. However, in the case of mutual funds, this limits investment amounts to Rs.50,000 per fund for each financial year. If investors want to invest more, they have to do an In-Person-Verification.
- In-Person-Verification (IPV) KYC
This process involves visiting a KYC kiosk for an in-person-verification or by calling a KYC registration agency and authenticating using biometrics. Once the verification is done, the maximum limit of Rs.50,000 is lifted for the customer.
It can also be required when you are checking your credit card status. The information may not be available to you if you have not done your IPV KYC.
Periodically updating your KYC
According to RBI, periodical KYC updates are done based on the risk perception of customers.
The update period for low-risk customers is 10 years. For medium risk customers, it is 8 years, and high-risk customers are required to update their KYC every 2 years. You can go with eKYC to eliminate the need to carry physical documents everywhere you go. Now that you know how to check your KYC status, the update process involves –
- PAN card verification.
- Re-authentication of Aadhar card.
- Other valid documents (OVD) might be required if the Aadhar card does not contain any address.
- Fresh photographs are required in case of minors.
Without proper KYC, financial institutions may refuse to provide you with any further facilities such as loans, cash disbursals and can even reject your credit card application.
Top financial institutions require correctly updated KYC before they can provide any financial products to a customer. This is quite similar to the procedure of availing the Bajaj Finserv RBL Bank SuperCard.
Knowing how to check KYC status can help you plan your finances with ease. It is one of the most important aspects to consider before applying for a credit card. Being aware of your KYC status in advance prevents the discontinuation of any financial services that require updated KYC.