How-to KYC re-KYC Validated KYC

How to re-KYC for mutual funds (upgrade Registered to Validated)

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Re-KYC means upgrading a Registered KYC (from Aadhaar OTP eKYC, with Rs 50,000 per AMC per FY limit) to a Validated KYC (full status, no limits). This is required when an investor outgrows the OTP-based onboarding limit or when refresh cycles trigger.

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 provider. No affiliate commission is earned from KYC services.

Step-by-step procedure

See the procedure infobox above.

Why Validated KYC matters

Aadhaar OTP eKYC is convenient but limited. The Rs 50,000 cap (per AMC per FY) is per AMC, not aggregate, so you can technically invest in many AMCs to scale up. But for serious investors with a single AMC of choice, the cap binds quickly.

Validated KYC removes all transaction-amount caps.

Periodic refresh requirement

AMFI’s Best Practice Guidelines on KYC periodic review suggest a refresh cycle of 5 years for low-risk investors, 2 years for medium-risk, and annual for high-risk (politically exposed persons, high-value investors). The refresh involves re-confirming address, identity, and current contact details.

For most retail investors, the 5-year cycle is the relevant one. Calendar a re-KYC every 5 years if you remain on Registered KYC.

What’s preserved vs reset

ItemBehaviour
KYC reference numberPreserved at KRA
Folio historyPreserved at all AMCs
Investment limitReset (no limit after Validated)
Cost basis recordsPreserved at RTAs
SIP mandatesPreserved (no need to recreate)

Cascade timeline

  • Video KYC at KRA portal: T+1 working day to Validated status.
  • IPV at service centre: 3-5 working days.
  • AMC folio recognition: 1-2 working days after KRA update.

See also

External references

References

  1. SEBI Master Circular for KYC dated 12 October 2023 (SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2023/171).
  2. SEBI (KYC Registration Agency) Regulations, 2011.
  3. AMFI Best Practice Guidelines on periodic KYC refresh.
  4. UIDAI Aadhaar limited eKYC (OTP) framework.

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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.

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Conflicts of interest
WebNotes is independent. No relationship with any broker, registrar or bank named in this article.