What is PAN KYC?
KYC, the procedure of confirming the consumers’ identities, stands for ‘Know Your Client or ‘Know your Customer’. In 2002, the Reserve Bank of India (RBI) issued KYC regulations that applied to all banks. In 2004, the RBI issued a directive to all banks requiring them to establish complete compliance with the KYC requirements by December 31, 2005. The KYC procedure has emerged as a potent weapon against problems like money laundering, tax evasion, corruption, etc. The Reserve Bank of India has given all banks instructions on KYC norms and regulations in order to meet the customers’ legal and regulatory requirements.
PAN Card’s function in KYC
The Indian government has made having a PAN card mandatory, for everyone who earns income, including people and non-individuals. The PAN card / PAN number serves to identify and confirm the identities of the parties involved in any financial transaction. To confirm the holder’s identification and prevent any problems, it is crucial to update KYC using PAN. One of the crucial papers that people are required to submit, as part of the KYC procedure is their PAN. The KYC process must be completed as soon as possible since a PAN card indicates important financial activities such as the acquisition of assets over a certain threshold, salary receivable bank accounts, and others.
See also: PAN card application form: All about Form 49A
Documents required for PAN KYC
Customers must provide the following paperwork with their KYC form, in order to provide identification and proof of address:
- PAN cards, driver’s licence, passport, Voter ID, Aadhaar cards, or bank photo passbooks are acceptable forms of identification.
- Current utility bills, Ration Cards, rental agreements, driver’s licence, or Aadhaar cards are acceptable forms of proof of address.
When is KYC required?
- Opening of accounts at banks
- Applying for credit cards or loans
- Locker opening
- Purchasing mutual funds
- An updated mobile connection
- Beneficiaries or signatories changing
See also: How to check PAN card Aadhar card link
How to verify PAN KYC status
Anyone who has completed the online KYC paperwork for their PAN cards can check their status. To check the progress of a PAN KYC update, just follow the instructions below:
- Visit CDSL’s website at https://www.cvlkra.com/kycpaninquiry.aspx (Central Depository Services Limited).
- Enter your PAN number after that.
- The updated status will be shown as ‘MF- Validated by CVLMF’ if your KYC has been verified.
- The status ‘Pending’ will be shown if your KYC has not yet been validated.
- If necessary, you can print the page.
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