What KYC documents one needs to buy gold?

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Gold which is highly fancied by our Indian community can be invested in not just physical form but also as, e-gold, gold ETFs, sovereign gold bonds or SGBs and the most recently introduced digital gold by Paytm in collaboration with the leading gold refiner, MMTC.

What KYC documents one needs to buy gold?

KYC is required for gold purchase over Rs. 2 lakh

Until the budget for the FY 2017-18, gold market called for KYC compliance on gold purchase of over Rs. 2 lakh. For it, an individual needs to furnish a valid ID proof that may be one of the following:

1. Voter ID

2. Passport

3. PAN or TAN

4. Aadhaar number

Experts were of the view that for the FY 2017-18, the threshold limit for KYC compliance in respect of gold purchase shall decrease to Rs. 50000 to Rs. 1 lakh.

KYC requirement in case of SGBs ( Better Alternative To Physcial Gold Investment)

In case you want to do away with the risk of loss or storage cost associated with physical gold in addition to several other disadvantages, you can invest in gold via SGBs. Sovereign gold bonds are government securities with denominations in grams of gold. For making an investment, investors have to pay the issue price and bonds shall be redeemed on maturity in cash.

In case of SGBs, KYC norms or documents required are similar to that needed in purchase of physical gold. Identification documents such as Aadhaar, PAN or TAN, voter id or passport will be required. The KYC process shall be carried on by the issuing banks, SHCIL or Stock Holding Corporation of India Limited or Post Offices or agents.

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Read more about: gold, physical gold, sgb, digital gold, kyc
Story first published: Tuesday, September 5, 2017, 12:49 [IST]
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