e-KYC or KYC online is an effective way to submit your identity and address proofs online. KYC itself is a standardised way to check the authenticity of customers on a portal by the Indian government. To verify their identity and address, a customer of the financial service will be required to submit their KYC documentation before they begin investing in a variety of instruments like fixed deposits, mutual funds, and bank accounts through the portal of the financial institution.
The goal is to potentially catch money laundering activities on any platforms. Hence, KYC is carried out with the goal to reduce or eliminate illegal practices such as the like. This is why KYC stands for ‘Know Your Customer.’ For most portals — be it mutual funds’ investments, brokerage trading platforms, and bank websites — before you create an account you will be required to carry out your KYC. The Reserve Bank of India has made KYC mandatory for anybody wishing to use these platforms. Most of the time filling in and submitting your KYC form is a one-time process. However, there are instances where you may have to update KYC online.
KYC updates are not as common as one might think. This is the reason that the instance in which one would have to update KYC details online are few and far to come by. However, it's possible to encounter at least one of these situations. Similar to how KYC is generally considered a onetime process, so is its update.
The following instances are when you have to update KYC details online.
Provided that you do not change your address or name for a second time, this process is generally considered to be a onetime way to access your financial history and carry out more transactions. Keep in mind that if it is the case that you have updated your personal details again, KYC updation is mandatory.
In fact, you may be barred from carrying out any potential transactions before you update your information. The RBI has made it mandatory that anyone update their KYC information to reflect their latest personal information as well. This brings up the question of, ‘how to update KYC.’ For most people, this process is incredibly streamlined and easy to carry out. Here are the steps for how to update KYC online.
If you’re curious about how to update KYC online for mutual funds’ investments, bank transactions, trading and more, here’s your answer. Similar to the manner in which traditional banks used to verify an identity, online KYC updates are carried out without the hassle of having to visit a kiosk in person. The digital KYC process is as follows:
1. Log in to the online portal where you wish to update your KYC.
2. Look out for an ‘Update KYC’ button in your settings on that portal.
3. Click on the button and it will open up the set of KYC preferences you have set beforehand.
4. Update whatever needs to be changed. Change your address and/or name and upload the latest scanned copies of relevant documents for both cases.
5. Before your information is saved and goes in for verification, you may be required to confirm a onetime password that will arrive at your registered mobile number or email that you have shared on that portal.
6. Once the OTP is correctly entered, you may then hit the ‘Submit’ button. Your information is now under review and you will be notified about whether your KYC verification is completed error free within the next few days.
Once the latest documents have been uploaded by the user as proof, the template for the documents is both identified as valid and examined against various checks. This procedure is carried out to ensure that the document has not been tampered with in any manner. Digital tampering via photoshop and the like is very common and fake physical documents that aren’t checked for this may go unnoticed by authorities. Hence, this is the final layer of scrutiny that a person’s application goes through for the digital KYC updation process.
As of now KYC updates offline are not as common as KYC updates online. This is because websites and other portals notify individuals when their KYC details online do not match their latest personal details. Then one is mandated to update their KYC before proceeding with any financial transaction on that portal. Offline update of KYC would involve visiting a mutual fund house, bank, or KYC kiosk in person with originals and copies of one’s latest documents.
Another thing to remember is that both the online and offline KYC verification procedure takes around one week to be authenticated. The online KYC registration may take a much shorter time period, but this can vary based on a slew of factors such as whether or not there were any errors, inconsistencies, or ambiguities in your application form. One of the factors is whether you are updating your information. Hence, your updated information, depending on the portal where you’re carrying out KYC, may take longer than usual to reflect. However, to speed up this process, ensure your form is correctly filled with all the latest information.