How-to KYC on hold rejected

How to fix KYC on hold or rejected status (mutual fund)

From WebNotes, a public knowledge base. Last updated 19 May 2026. Reading time ~6 min.

Key facts

Time required	10 working days end to end (typical)
Cost	Free at KRA / CAMS / KFin
Common reasons	Document mismatch, address proof expired, PAN-Aadhaar unlinked
Escalation route	AMFI grievance redressal, then SEBI SCORES

Mutual fund KYC stuck on On Hold, Rejected, Invalid, or Insufficient status blocks new investments and may also block SIP debits, redemptions, and switches on existing folios. The fix depends on identifying the exact reason and applying the right remedy.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any KRA, AMC, RTA, or service centre. No affiliate commission is earned from KYC resolution services.

Step-by-step procedure

See the procedure infobox above.

Common rejection reasons and fixes

Reason	Fix
PAN-Aadhaar mismatch (names differ)	Update PAN or Aadhaar to align (how-to-update-kyc-name-mf)
PAN-Aadhaar unlinked	Link via Income Tax portal (how-to-link-pan-aadhaar-mf)
Address proof not accepted	Submit OVD-listed proof (passport, voter ID, driving licence, latest bank statement)
Photo unclear	Submit fresh passport-size photo
Signature illegible	Submit fresh signature on bank-attested form
Document expired	Submit current valid version
Aadhaar OTP not received	Update Aadhaar mobile at UIDAI first
Income range not entered	Re-submit form with income disclosure
FATCA self-cert missing	File FATCA self-certification with AMC

Officially Valid Documents (OVD) for address

Per SEBI / RBI master directions:

Passport (current).
Voter ID card.
Driving licence (current).
Aadhaar (e-Aadhaar print acceptable).
NREGA job card.
Letter from National Population Register containing name and address.

Utility bills, bank statements, and rent agreements are deemed OVDs in specific circumstances (e.g., when the primary OVD does not have current address; supplementary OVD route).

Escalation pathway

AMC compliance officer: Send a written complaint with KYC reference and chronology. Most AMCs have 30-day SLA.
AMFI grievance redressal: Use amfiindia.com > Investor Corner > Grievance Redressal. Lodge a formal complaint citing all attempts to date.
SEBI SCORES: scores.gov.in. File a complaint citing AMC and KRA non-resolution. SEBI investigates and directs action.
Banking Ombudsman: For PAN-Aadhaar linkage / payment-flow issues only.

Timeline expectations

First-attempt fix at KRA: 5-10 working days.
PAN correction + re-submit: 10 + 15 = 25 working days.
Aadhaar update + re-submit: 15 + 15 = 30 working days.
Escalation to AMFI / SCORES: additional 30-60 days.

Plan transactions accordingly. Avoid time-critical investments while KYC is on hold.

External references

References

SEBI Master Circular for KYC dated 12 October 2023 (SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2023/171).
SEBI (KYC Registration Agency) Regulations, 2011.
AMFI Best Practice Guidelines on KYC discrepancy resolution.
SEBI SCORES grievance redressal framework.
CBDT Section 139AA on PAN-Aadhaar linkage.

Reviewed and published by

WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

Last reviewed: 19 May 2026
Conflicts of interest: WebNotes is independent. No relationship with any broker, registrar or bank named in this article.