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Now, as per its recent circular, KRAs can authenticate the customer’s identity within 2 days of them submitting documents. Additionally, KRAs can begin the customer validation process after their account has already been opened.
Market watchdog SEBI has simplified the KYC (Know Your Customer) process for intermediaries by allowing for customer verification after onboarding or opening his/her account.
In April 2022, SEBI had mandated that a customer’s account could only be opened after their documents had been verified by KYC Registration agencies (KRA), and they had been assigned a unique identifier code. This code made the KYC process interoperable, allowing customers to avail services from other intermediaries in the system, without having to undergo KYC again.
Now, as per its recent circular, KRAs can authenticate the customer’s identity within 2 days of them submitting documents. Additionally, KRAs can begin the customer validation process after their account has already been opened.
KRAs will need to verify the following data points in the records:
PAN-Aadhaar linkage
Name, Address
Mobile number, E-mail ID
However, it is important to note that if validation is unsuccessful, the customer will not be allowed portability. They will also not be allowed to open accounts, or even transact in the market, till their verification is complete. Only complete, verified customer records, approved by KRAs will not have to undergo any further KYC processes when availing services from other intermediaries.
“The records of all existing clients, whose KYC has been completed based on officially valid documents other than Aadhaar, would be verified within a period of 90 days from September 1, 2023”, the circular further highlighted