PAN Card KYC - Verification, Status, and Importance

Among the various documents which need to be submitted as KYC, a PAN Card is one of them. To verify your identity and that you are a tax-paying citizen of the country, you must provide your PAN Card as a proof of income and proof of identity.

The PAN Card is issued to you by the Income Tax Department of India which enables you to file your taxes and tax returns to prove that you are above the tax bracket and that you are a regular tax-paying citizen of the country. A PAN Card is a must for most of your financial transactions such as opening a bank account, investing in mutual funds, etc.

However, during the recent Union Budget, the government has stressed on Aadhaar Card and PAN Card interchangeability where if you do not hold a PAN Card, you can still go ahead with various financial transitions with your Aadhaar Card.

How to Check PAN Card KYC Status?

After you have submitted all the documents and the KYC form online, you can check the status of your KYC online with these steps.

Step 1  - Visit the website of the Central Depository Service Limited.

Step 2 - You can check the status of your KYC with either your date of birth or PAN Card.

Step 3 - Enter your PAN Card details and click on 'submit'.

Step 4  - If the KYC has been verified, the status will be displayed as MF-Verified by CVLMF.

Step 5 - However, if the KYC is verified, it will show 'Pending'.

How to Verify PAN Card KYC Online?

KYC can be done very easily through the online process by filling out an online KYC form. You can follow the given below steps to complete your KYC online: 

Step 1 - You can visit the SEBI website and log in to your account

Step 2 - Then click on the option “Know Your Customer (KYC) Registration Agency.”

Step 3 - Now create your profile by filling in the necessary details

Step 4 - Enter the PAN and Aadhaar Card information and then upload a self-certified copy of your Aadhaar card.

Step 5 - Submit the form online, and you will receive an OTP on your registered mobile number.

Step 6 - Use the OTP to verify your account and make sure that your mobile number is linked to your Aadhaar and PAN.

How to Verify PAN Card KYC Offline?

Offline PAN Card KYC provides a reliable alternative to the online process, offering a method for individuals who prefer physical documentation. Here is how to complete the offline PAN Card KYC:

Step 1 - Visit the CDSL Ventures website and download the Know Your Customer form to your computer or obtain a physical copy from a bank branch.

Step 2 - Fill in all required fields on the KYC form accurately and legibly. Ensure that all details provided match those on your PAN Card and other supporting documents.

Step 3 - Sign the KYC form in the designated space to certify the accuracy of the information provided.

Step 4 - Attach a copy of your PAN Card and a self-attested proof of address to the completed KYC form. If your address requires attestation, it can be done by a third party, though it's not mandatory if valid proof of address is provided. Accepted documents for proof of address include government-issued IDs such as Voter ID, Passport, or Aadhaar Card.

Step 5 - Affix a recent passport-sized photograph to the designated area on the KYC form.

Step 6 - Take the completed KYC form along with the attached documents to a bank branch. Bank staff will conduct physical verification to authenticate the information provided and update your KYC details.

Aadhaar Based KYC

Now PAN KYC can be done through your Adhaar card. Here are the steps given below:

1. You can complete your KYC using Aadhaar biometric information.

1. A bank executive will come to your place for the process.

1. You will need to provide a copy of your Aadhaar Card and PAN Card.

1. The executive will scan your fingerprint and match your details.

1. This way your KYC will be completed, and you can check PAN Card update status through the CSDL website.

Importance of PAN Card in KYC

The PAN Card holds significant importance in the KYC process for several reasons:

1. Government Regulations: Indian government regulations mandate that all income-earning individuals and non-individual entities possess a PAN Card. Compliance with these regulations is essential for conducting financial transactions legally.
2. Identity Authentication: The primary purpose of the PAN Card is to authenticate the identity of individuals and entities involved in financial activities. Its unique identification number helps verify the identity of the PAN cardholder, thereby ensuring transparency and accountability in financial transactions.
3. Preventing Discrepancies: Utilizing the PAN Card for KYC updates is crucial because it serves as a vital document for verifying the holder's identity. By cross-referencing PAN details with other KYC information, financial institutions can detect and prevent potential discrepancies or fraudulent activities.
4. Insights into Financial Activities: PAN Cards provide valuable insights into significant financial activities such as salary deposits, high-value asset purchases, and tax payments. By linking these activities to the PAN Card, financial institutions can assess the financial profile and behaviour of individuals and entities, contributing to risk management and regulatory compliance.

Situations - Where your KYC is Required?

Know Your Customer (KYC) is required in various situations to ensure compliance with regulatory standards and enhance security measures. KYC is important for the following:

1. Opening a New Bank Account: Banks require KYC documentation to verify the identity and address of individuals opening new accounts. 
2. Applying for a Loan or a Credit/Debit Card: Financial institutions mandate KYC procedures to assess the creditworthiness of applicants and mitigate the risk of fraudulent transactions.
3. Investing in Mutual Funds: Mutual fund companies require KYC compliance to authenticate investors' identities and comply with regulatory requirements.
4. Opening a Locker at a Bank: Banks necessitate KYC verification to grant access to safe deposit lockers, ensuring the security of the contents stored within.
5. Making Changes to Beneficiaries or Signatories: Any alterations to beneficiaries or signatories on accounts necessitate KYC verification to validate the identity and authority of the individuals involved.
6. Insufficient Documentation: In cases where existing documents held by the bank are insufficient, additional KYC verification may be required. This could involve sending a representative to collect the necessary details for additional proof and security.

Documents Required for eKYC of PAN Card

In addition to the KYC form and a passport-sized photograph, the following documents must be submitted:

1. Identity Proof: Driving license/Voter ID/Bank passbook/PAN Card/Passport photocopy/Aadhaar Card
2. Address Proof : Latest mobile or landline bill/Passport photocopy/Latest bank passbook/Voter ID/Driving licence/Latest electricity bill/Latest Demat account statement/Ration card/Aadhaar card/Rental agreement

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