Know Your Customer (KYC) is a mandatory process in financial and investment services worldwide. It involves verifying the identity, address, and financial background of an individual before allowing them to open an account or invest in financial instruments. For Non-Resident Indians (NRIs), KYC compliance is crucial to invest in India, ensuring transparency and regulatory compliance.
Financial institutions must verify the legitimacy of their customers to prevent financial crimes.
The Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI) mandate KYC compliance for all financial transactions.
KYC approval enables seamless transactions, repatriation, and portfolio management.
KYC documentation helps in tax assessment and compliance with Indian and foreign tax laws.
All NRIs who wish to invest in:
The traditional method requires physical verification at an authorized center.
A digital verification process where identity and documents are verified online.
SEBI and RBI now allow video-based KYC, where investors verify their identity via video call.
Passport (Notarized copy required)
Utility Bill, Overseas Driving License, or Bank Statement
Mandatory for all investments in India
NRE/NRO account details
For US-based NRIs to comply with tax regulations
Select a SEBI-registered intermediary, such as CAMS KRA, CVL KRA, or the fund house where you plan to invest.
The form can be downloaded from the financial institution's website or filled online for eKYC.
The verification process usually takes 3-7 working days. Once approved, a confirmation is sent via email or SMS.
| Challenges | Solutions |
| Lack of access to physical verification centers | Use Video KYC or eKYC |
| Document attestation delays | Get documents notarized at the nearest Indian embassy |
| Mismatch in address proof | Ensure overseas and Indian addresses match your financial records |
| FATCA compliance issues | Submit tax declaration timely to avoid account freezing |
KYC is the first and most crucial step for NRIs looking to invest in India. A streamlined process now allows easy online verification, making it simpler for overseas investors.
Ensuring your KYC compliance is up to date will save time and prevent investment delays. By leveraging eKYC and video KYC, NRIs can complete the process from anywhere in the world.
