Significance of PAN KYC

It is a must for everyone to acknowledge the PAN KYC status. Using PAN Card for updating KYC is an easy way of verifying the identity of a citizen of India. Through PAN Card, the government easily able to track financial transactions like salary receivable bank accounts, purchasing of property, or jewelry, etc. The concept of KYC status came into existence to avoid any kind of fraudulent activities, identity theft, online fraud while making any kind of financial transactions.

What is KYC?

The full form of KYC is Know your Customer. The Reserve bank of India has created KYC guidelines in 2002 intended to meet the legal and regulatory requirements of the customers. In 2004, RBI has made it a compulsion for all the banks to ensure that they are fully compliant with all the provisions of KYC before December 31, 2005. Companies and banks are the biggest supporters of KYC as it acts as a powerful tool for combating issues like terrorist financing, tax evasion, money laundering, etc.

The documents required for PAN KYC

Identity Proof: Driving License, PAN Card, Passport, Voter ID, Aadhaar Card, or Bank Photo Passbook.

>Address Proof: Latest utility bill like landline bill, mobile bill, electricity bill, ration card, Rental Agreement, Driving License or Aadhaar Card

Where it is important to have a PAN KYC?

Important situations in which need of the KYC arises?

• When anyone is opening a bank account
• Changes have taken place in beneficiaries or signatories
• Applying for Loan and Credit cards
• Opening a locker
• New mobile connection
• Mutual Fund investment

Steps to perform PAN KYC

Any customer who has made online submission of KYC forms can check the PAN KYC status with a few clicks.

All you need is to follow the steps mentioned below to track PAN KYC update status:

• Log on to the website of CDSL (Central Depository Services Limited)
• Afterward, provide your PAN number
• After KYC verification, the updated status will be displayed as ‘MF- Verified by CVLMF’.
• If your KYC has not been verified then, the status ‘Pending’ will be shown.
• You can take a print of the page if needed.