Are you KYCed

Long ago for most of us the only proof of Identity issued by government was ration card. Then came a time when in most of the towns and villages there were more ration cards than the actual number of residents.

Then the Income tax department introduced the PAN or Permanent Account Number that was supposed to keep track of all tax paying individuals. Then the Election commission decided to introduce voters ID card that would prove that you are a bonafide voter of a constituency and also as your proof of address. Then AMFI decided that all mutual fund investors need to have a MIN mutual fund identification number. This was some years ago but the project was aborted as no body came forward to claim paternity for the same. We also have a Directors Identification number that all directors of public and private companies need to have. Now a BAAP of all the numbers UIN is on the cards which is suppose to be something similar to SSN of USA.

The reason l have written the above paragraph is because the AMFI has again come up with guidelines that all investors need to have a KYC done before they can invest in the mutual funds this will be applicable from January 1 2011. Till date only if you were investing more than INR 50K in a mutual fund in one go you had to get yourself KYCed, any thing less than that you were ok. So most of us would invest less than 50 K in one go and not worry about the KYC process. Now with the rules changed each one of us needs to get ourselves KYCed ( I just coined a new word). While I have got myself KYCed some time back here is the funny part:

In order to be KYCed or KYC compliant you need to fill a form and send the photocopy of the following :

1. PAN CARD
2. Any address proof that varies from Driving licence to bank passbook etc.

What tickles me is that PAN card and any address proof needs to be self attested with a photo graph and need to be sent to CDSL through a point of sales. Which can be your Mutual Fund, your bank etc.

Now my question is when the mutual fund or the bank account were opened these documents were already provided to them now the same documents need to be provided again to become KYCed.

I am sure whosoever thought about this scheme has either lost their ability to think straight or has some vested interest in this whole thing. Other wise there is no reason to ask for the same documents again that were provided at the time of opening the bank account or the mutual fund account.

Any ways since we don’t have a choice this is where you can get the KYC Form

Here are the FAQs that you may want to be answered for KYC process.

The coming New Year is when the new guidelines come in force, so you better hurry up.

Thanks for reading do leave a comment.