Introduction

In India, compliance is just as crucial to banking and investment as convenience. For Non-Resident Indians (NRIs), a crucial initial step in opening bank account, Demat account, or investing in mutual funds is to complete the Know Your Customer (KYC) process. This rule mandates that financial institutions should confirm the identity, address, and status of each investor or account holder.

Since NRIs reside outside the country, the acceptable KYC documents vary somewhat from those required for residents of India.

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Importance of KYC

Regulators such as The Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) have laid down the KYC norms. KYC fulfils various roles for NRIs:

• Verifying your identity and citizenship.

• Checking addresses from both overseas and India.

• Making sure you comply with the regulations set by Foreign Exchange Management Act (FEMA).

• Protecting against the exploitation of banks and financial systems for illicit activities such as money laundering or fraud.

NRIs cannot open NRE/NRO/FCNR accounts, invest in mutual funds, or trade in Indian equities without completing KYC.

List of Acceptable KYC documents for KYC

There are typically four primary categories of acceptable documents:

• Identity verification

• Address verification (both international and domestic),

• PAN Card,

• Photographs.

Identity verification

One of the following documents is necessary:

• Copy of Valid Indian Passport (the most commonly recognised document).

• Copy of Foreign passport with residence details.

Proof of NRI status

• Copy of OCI Card or PIO Card, along with a foreign passport.

• A valid Visa, Work Permit, or Residence Permit must be issued by the country where you reside.

Address verification

Given that NRIs typically have an address in both their foreign location and India, financial institutions usually ask for both:

Proof of Address from overseas (required):

• Recent utility bills (electricity, telephone, gas) from the last three months.

• Statements from international bank accounts.

• Permit of residence granted by the overseas authority.

• License obtained from another country.

• Address Proof in India (optional but advisable): Aadhaar Card.

• Passport from India featuring a local address.

• Utility bills registered under the NRI's name at their residence in India.

• Official rental contract.

PAN Card

For NRIs looking to invest in Indian securities or open specific bank accounts, having a Permanent Account Number (PAN) is essential. Completing any investment-related KYC requires a valid PAN. In absence of a PAN card, you need to submit FORM 60.

Passport-sized Photos

Make sure to attach recent coloured passport-size photographs to the KYC form.

Attesting Documents

As NRIs are located outside of India, their documents must be authenticated to ensure their authenticity.

• The Indian Embassy or Consulate of your resident country

• Notary Public in another country.

• Judge or Court Magistrate.

• Indian banks that have branches outside of India.

You need to send in attested copies with the KYC form. Some banks and other financial institutions also let you do KYC over video to speed up the process.

Submitting KYC as an NRI

You can opt one of the following ways to submit your KYC as an NRI.

Through bank branches

If your bank has an overseas branch, you may be able to complete the transaction locally.

Online Submission

Some banks and mutual fund institutions provide e-KYC or video KYC services, which allow you to upload scanned copies and complete verification over a video conversation.

Offline Submission

You can get the KYC form from the bank's website, fill it out, include documents that have been signed off on, and send the package to the India office.

Conclusion

If you want to open an NRE account, invest in mutual funds, or trade Indian shares, KYC is the first step towards financial success as an NRI. The document requirements may sound excessive, but they secure your money while also ensuring compliance with Indian and international regulations. You can simplify KYC by arranging your passport, PAN, foreign address proof, and other supporting documents and guaranteeing proper attestation.

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