KYC with utility bills for MF invalid after 31 March

Mutual fund investors who have used utility bills or bank statements for KYC (know your customer) requirements must update their records with officially valid documents by 31 March, according to a communication issued by two registrar and transfer agents—

KFintech and CAMS to distributors.

Official valid documents include passports, Aadhaar cards, driving licences, voter IDs, NREGA job cards, and National Population Register (NPR) letters bearing your name and address details. Non-compliance will result in a freeze on new transactions.

The separate instructions by RTAs have caused confusion among mutual fund distributors, particularly with regard to driving licences for KYC requirements. While CAMS communication says those who have provided a copy of driving licence need to resubmit their KYC, Kfintech lists a driving licence as an officially valid document.

“While compliance with regulations is in everyone’s interest, there is a state of confusion due to inconsistent communications from RTAs,” said Amol Joshi, a mutual fund distributor and founder of PlanRupee Investment Service.

Mutual fund distributors are also concerned about the practicality of re-verification, particularly regarding the availability of online options for such submissions.

“It’s too cumbersome for the investor as it gives very little time to comply…There is no option to comply online and investors need to do it physically at a nearby RTA branch,” said Pushkar Shah, a mutual fund distributor and co-founder of Proton Wealth.

Joshi said that this physical process might lead to delays and rejections. Emails sent to CAMS and KFintech did not elicit any response.