Paytm Money Online KYC for new mutual fund investor: guide with step by step instructions

Published: March 6, 2019 at 1:55 pm

Last Updated on

A new mutual fund investor has to verify ID and address proof. This is known as KYC or Know Your Customer. Here is how you can do online KYC using Paytm money. The facility of online KYC is crucial for direct mutual fund investors who are too busy to visit an AMC office or CAMs or Karvy for “in-person verification”. Online KYC facility introduced by Paytm Money is a game changer in the direct mutual fund investing space. Here is step-by-step instructions. Please share this post with those who wish to start mutual fund investments.

Note: KYC process is onetime and valid across all mutual fund investment platforms and fund houses. So even if you do not wish to invest via Paytm money, you can get the online KYC done, park money in a liquid fund for emergency purposes and invest elsewhere. If you need help to get started, consult my handpicked list of mutual funds for beginners.

Motivation: I have no connection with Paytm Money. The only purpose of this post is to serve as a guide to those who wish to complete their mutual fund KYC process online easily. This post is inspired by two college kids belonging to low-income households. They heard me addresses World Bank staff at a hotel where they worked part-time and wanted to become financially free. When I tried to find easy solutions for them to get started on direct mutual funds, Paytm Money seemed the simplest solution.

How to do Online KYC in Paytm Money to start investing in mutual funds

Paytm Money is a SEBI registered Investment Adviser and a Digital Platform that allows you to do paperless investments in Direct Mutual Funds (at Zero Commission/Fees).

1. To begin with, download the Paytm Money app from the Google Play Store.

Download Paytm from Google Play Store: screenshot

2. Login to the Paytm Money app with your registered mobile number or email address. In case, you do not have a Paytm account, you can sign up using the link on the first screen. Once you login, the first screen would ask you to input your PAN number to check the investment readiness stage.

logging into Paytm money
logging into Paytm money

Paytm Money checks your investment readiness in 6 stages

  1. PAN Card
  2. Personal Details
  3. Address Proof
  4. Nominee & Declarations
  5. Communication Details
  6. Bank Account
investment readiness check in Paytm Money
investment readiness check in Paytm Money

We take each of the above 6 stages in detail as under:

PAN Card:

Enter your Permanent Account Number.

Enter your Permanent Account Number in Paytm Money
Enter your Permanent Account Number in Paytm Money

Your PAN will be checked for correctness once you click on submit. If you are not KYC verified with Paytm, you would be asked to upload a picture of your PAN Card and agree to the Terms of Paytm Money for conducting your KYC.

Pan image upload screenshots

Note: The PAN Card photo must be sharp/clear and the name on it must be easy to read. PAN Card should also have a signature to be a valid document.

 

paytm money pan upload stage one screenshot
paytm money pan upload stage one screenshot
paytm money pan upload stage two screenshot
paytm money pan upload stage two screenshot

 

paytm money pan upload stage three screenshot
paytm money pan upload stage three screenshot
paytm money pan upload stage four screenshot
paytm money pan upload stage four screenshot

Personal Details:

This stage is covered in 4 sub-stages:-

1. Personal: Enter your Name, Date of Birth, Fathers Name exactly as written on the PAN Card. (If the details as mentioned in the images uploaded do not match with what you have filled in the form, the app would reject your application)

entering personal details for online KYC in Paytm Money

2. Signature: You can either sign on the screen or upload a photo of your signature. It is recommended to upload a photo of your signature as signing on the screen is a bit difficult. Sign on a blank white page & upload a clearly visible picture.

online signature or upload screenshot in Paytm Money

3. Photo: Upload a photo which is clear and taken in sufficient light. In order to avoid rejection, it is recommended to upload a photo which you might have taken for your Passport. If you are taking a photo using the phone camera, ensure that your face and torso are visible with a light background.

4. In Person Verification: As per KYC regulations, you need to record a 5 second video to prove that you are the one who is creating the account. It prevents others from creating the account on your behalf using your details. Please ensure that your face is clearly visible while recording the video. A sample video is available on the app. You need to speak & record the following: “My name is (as mentioned in your PAN Card) and this is my in person verification video for Paytm Money.”

entering personal details for online KYC in Paytm Moneyonline signature or upload screenshot in Paytm Money

screenshot of the in person verification process for online KYC at Paytm Money
screenshot of the in person verification process for online KYC at Paytm Money

5. Address Proof:

address details for KYC verification
address details for KYC verification

Enter your address exactly as mentioned in your address proof. If the details entered do not match exactly as on your address proof, the application would be rejected. Government approved documents such as Aadhar, Passport or Driving License are accepted as address proof. Upload a picture of the front and back side of your address proof.

6. Nominee & Declarations:

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Entering details of Nominee is optional. However, it strongly recommended you to enter the name, date of birth and relationship of the nominee for smooth claim settlements in the future.

nomination details screen one for online mutual fund KYC

As a part of KYC process, you need to declare your: Income, Nationality, Tax Residency and Politically Exposed Person (PEP) status. Below are brief details to help you understand PEP and tax residency status:

PEP: Members of Parliament, State Assemblies, Judges, Governors and senior government officers would come within the Politically Exposed Persons (PEP) category along with their close relatives. If you are a PEP, you will be watched more closely to check for corruption or money laundering. The KYC may take longer & additional documents may be asked from you for the process.

Tax residency: According to the tax laws, an individual is considered to be a tax resident if he or she is present in India for:

  1. 182 days or more in a fiscal year, or
  2. 60 days or more in a fiscal year and 365 days or more during the preceding 4 fiscal years.

nomination details screen two for online mutual fund KYC

Communication Details:

Now you would be required to enter your email address to receive communications from Paytm Money. An OTP would be sent to your email address and it needs to be entered to verify the email address.

communication details screenshot in Paytm money

Bank Details:

bank details for mutual fund KYC: screen one in Paytm money

Enter your account number, IFS Code from which you would be making payments for your investments. The redemptions would also be credited to this account. Hence, choose the account wisely. The account that you use here, should have facility like Internet Banking/Debit card if you wish to make online payments. Typically, it should be your primary savings/salary account.

bank details for mutual fund KYC: screen two in Paytm money

Paytm will instantly verify your bank account by crediting 1 rupee. The narration for this transaction in your account will show text such as IMPS Fund Trf/PAYTMMONEYLIMIT. If you have activated SMS alerts for the account, you would also receive the transaction alert.

After this, you would be asked to upload a cancelled cheque or the bank account statement. Ensure that your name and account number is clearly visible in the document you upload.

bank details for mutual fund KYC: screen three in Paytm money

bank details for mutual fund KYC: screen four in Paytm money

KY in process screen ay Paytm Money

Hurray! You have completed all the steps for Paytm KYC.

Checking the status of KYC

You can view the stage wise status of your KYC from the Home Screen. If you find that

a certain stage is rejected, click on View to know the reasons. Here are some examples.

Mutual fund KYC rejection because of unclear video Mutual fund KYC rejection because of unclear photo Mutual fund KYC rejection because of unclear signature Mutual fund KYC rejection because of incorrect details. Screenshot of SMS received

Click on the “Cross” mark to delete your existing details & re-enter/upload the revised details. Once all the details/stages are verified, check the status of your KYC by clicking on the Profile tab on the bottom right of the screen. On successful completion, “Investment Ready” would be shown against your name with a green color tick mark.

Congratulations! Your KYC is now complete and you can start investing on Paytm Money. #PaytmPaytmy for investing in mutual funds”

Video version: Online mutual fund KYC steps

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M Pattabiraman author of freefincal.comM. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. since Aug 2006. Connect with him via Linkedin
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5 Comments

  1. PayTm money kyc is valid for investment through Paytm money for others like CAMS you have to do seperate KYC

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