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From January 1, 2023, bank statements and passbook copy cannot be used as a valid proof of identification or proof of address for doing KYC.
KYC Registration Agencies (KRAs) have clarified that they will not accept bank statement and passbook copy of any individual investors including NRIs.
However, KRAs will continue to accept bank statement or passbook copy with entries of at least two months as a valid KYC proof for non-individual investors and Hindu Undivided Family (HUF).
From November 1, KRAs are not accepting copy of Aadhaar. They insist investors to submit eAadhaar or Aadhaar XML or virtual ID (VID), which requires them to follow a due process to download. Further, the downloaded Aadhaar must have QR code in it which can be scanned by KRAs.
In addition, KRAs have stopped accepting scanned copy of KYC documents. Further, the KYC application form has to duly signed with the wet signature of the applicant.
This will affect entry of new investors at least for some time. In fact, AMFI data shows that the MF industry added 78,045 investors in November 2022, the lowest since April 2022. Between April and October, the industry added over 3.75 laakh new investors on a monthly basis. Experts attribute this massive decline in new investor registration to change in KYC norms.
