Hi, Reader/Investors… A warm welcome to the new Financial Year. To update you, the financial bill 2017 is passed and this year you will hear, read and get a lot of advice on these 4 words PAN, Aadhar, C-KYC & Digilocker. If you have been investing or want to start this year – you need to get these 4 things in order. If you don’t have one you are going to know how to get these in this post.
PAN, Aadhar & C-KYC are now your financial as well as social identity. And the good thing is these are all linked too. So you cannot afford to hide or miss anyone. Digilocker is your gateway to digitalisation. The days of photocopies or attestation will be gone. You just need to get the documents digitalise and provide the access to avail any service like a new SIM or a new demat.
So, this post will focus on getting or updating your basic documents PAN, Aadhar, Central KYC, and Digilocker.
Let’s start with PAN.
Permanent Account Number (PAN)
Pan is your basic Income Tax Identification. All income/deductions/taxes are based or calculated by quoting PAN. I am sure everyone has it, but do you have a correct name on it? Data errors or change in name may provide a lot of confusions. Spelling mistakes or inclusion/deletion of initials is a very common mistake that PAN has.
See this, one of our client’s record. Since his PAN was wrong the bank opened the account on the wrong name. Now Mutual Funds recorded what was on other documents like Aadhar so when an investor wanted to withdraw funds, his cheque got bounced and it took him more than 15 days to get the credit.
Just check yours and if there is a mistake, here is the online help for you:
It looks like this:
Click and you get instructions, payment details. Go down and choose your category like individual, HUF etc. and click select.
Just fill details attach documents & make documents. Ho Gaya… just wait for the speed post. The new PAN or corrected PAN will arrive at your door.
Now next is Aadhar
Well, this document, once which was termed as “weapon of the immigrants” has attained a new identity. Now all social schemes are running through this. Very soon, the Aadhar will also be used to track financial transactions as banks, mutual funds have been told to register Aadhar on a mass scale.
I am sure you have received SMS from your bank or your Gas Agency to link your Aadhar. We in financial field have started taking Aadhar as a preferred document when we do KYC for investors. So Aadhar is a must to have now with proper details.
Aadhar is a biometric identity document means the details it captures are unique for a person. It captures your fingerprints and retina scan. So it actually proves you bio-identity too.
To capture these details one needs sophisticated scanners which are not home available, hence for the first-time Aadhar needs to be made at these authorized points only.
If you have an Aadhar and need corrections click on the link given on the home page.
It tells you what you can change, what documents you require. Keep these docs handy.
Click on the online correction link and rest of the steps are very easy and it guides you throughout.
This way you can get your Aadhar corrected.
CKYC OR Centralized Know Your Client/Customer
This is must for financial transaction whether it is your bank, mutual fund, Demat, trading account, insurance, loan companies or any other financial platform. Let me tell you in a nutshell what is CKYC.
Initially, it was a plain simple application in a physical form with basic investor details. To add to the pain, in 2015, FATCA and Additional KYC details were also required to be submitted. If you did not do that, your future investments would not be accepted and you would not be able to redeem your existing investments.
For a long time, investors and service providers were asking why does one need to multiple KYCs. Why can’t the system use the KYC done at once place with another service provider? This time policy makers heard it and
So, a new initiative called the Central KYC Registry was started in July/August 2016. Now, all KYCs across financial services have to be fed in this Central KYC Registry.
The purpose of the Central KYC registry is that if your KYC is now done once with any of the financial services company that you deal with, you would never to have to do it again. Also, any update to your KYC information can be done with any of the industry participants (Banks, Mutual Funds, Insurance Companies, Investment Advisors, etc) and it will reflect across via the Central KYC.
Now the question is who is doing CKYC? Well, all MFs are doing it but they insist you should have a transaction with them or they do it partially online and then you submit/send documents. So here is one Mutual Fund which is doing it free, without transaction compulsion and COMPLETELY ONLINE. Just click this link:
The process is simple if are following requirements. I did this at 11 30 at night and did it in 14 mins. You should have a nice internet connection, laptop or system with the camera working, self-attested scans of PAN and address proof and a white paper with your signatures on it. That’s it the process is very simple:
- Enter your PAN. The system checks if it is a valid PAN and if you are already KYC verified.
- If you are already KYC verified, it will alert you and ask you if you wish to modify your KYC details. Press Continue if you want to modify.
- Enter your Name, Mobile Number, Email and Aadhar (UID) Number.
- Tick the check box to accept to receive communication from the AMC and then submit.
- On the next page, your add more of your personal details required for Central KYC.
- Upload self-certified copies of your PAN card and your Aadhar card.
- You add your photo by clicking via your device camera. (Yes, be dressed properly)
- For your signature, you can sign on a plain piece of paper and show it to the device camera and capture it.
- Next is IPV or In-person Your IPV is done via a live video recording through your device camera.
- Confirm all the information you have provided and submit.
A mail from Quantum AMC will confirm all details and seek your permission to submit the documents to CKYC registrar. Once you approve you will receive CPIN or KYC Identifier number, which can be quoted wherever you want.
And do not comment on my photo. This was meant to be BAD to keep up the tradition of having worst pictures on your driving license and voter id! Please look at your own pic on your DL or Voter ID before bursting into laughter.
And now the DIGILOCKER
This is your government providing you a cloud space of 1 GB! Yes, you heard it correctly.
DigiLocker is a “digital locker” introduced in February 2016 and the service was launched by the Government of India in July 2015 to provide a secure dedicated personal electronic space for storing the documents of resident Indian citizens. The storage space of 1GB is linked to the Unique Identification Authority of India (Aadhaar number) of the user, which can be utilized for storing personal documents like University certificates, Permanent account number (PAN) cards, voter id cards, the URIs of the e-documents issued by various Government departments.
There is also an associated facility for e-signing documents. The service is intended to minimize the use of physical documents, reduce administrative expenses, provide authenticity of the e-documents, provide secure access to government-issued documents and to make it easy for the residents to receive services.
To sign up the user should possess an Aadhar Card and a mobile number linked to it. Here is how you can access it:
Just type your mobile and Aadhar, verify through OTP and choose a login & Password. 1GB is yours. After sign up this is the Dashboard and your preloaded documents:
This is how you can load all your personal documents and use this as a storage till further details are announced for using it.
So here I sum up by saying that it’s always prudent to update and keep the documents handy. This saves time and energy and enhances security. Hope you will start doing this right now to celebrate the new year in true spirit.
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