KYC

KYC stands for Know Your Customer. It is a quick, one time identity check that banks and investing apps must do before you can start. You usually finish it by uploading your PAN and Aadhaar.

Why KYC exists

The rules require banks, fund houses and brokers to confirm who you are before they take your money. It is there to stop fraud, money laundering and accounts opened in fake names. For you it is a one-time hurdle: once you are KYC-verified, opening the next account or investing in another fund is far quicker.

How it is done

Most apps now finish KYC fully online. You enter your PAN, verify your Aadhaar with a one-time password, take a live selfie or a short video, and sometimes sign digitally. This is called paperless or video KYC. Older offline KYC meant submitting photocopies in person, which is now rare for everyday investing.

Do it once, use it widely

Mutual fund KYC is largely centralised. Once a registered agency has verified you, your status is shared, so you can usually invest across different fund houses without repeating the whole process. You only need to update it when your details change, for example a new address, or if an agency marks your KYC on hold and asks you to re-verify.

What to watch for

Keep the details on your PAN, Aadhaar and bank account matching, because a mismatch is the most common reason KYC gets stuck. And complete KYC only on an official app or website. Scammers send fake messages warning that your KYC will expire and linking to a form that steals your details; a genuine KYC update never happens through a random SMS link. See the KYC update scam for how that trick works.