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KYC and Opening an Exchange Account
What documents do I need to open a crypto account in India, and how long does KYC take?
As of November 2026, most Indian exchanges ask for PAN, an Aadhaar-linked phone, a selfie and a bank account in your name. Filling the forms takes minutes, and approval can take up to a day or two.
Module 3 · Chapter 1 of 8 · ~5 min read · Tax and law facts as of November 2026
Last chapter said to practise without borrowed money first, so Module 3 starts with the practical first purchase. First comes the account. What documents do you need to open one in India, and how long does KYC, the identity check, take?
- 4things to keep ready
- 18minimum age
- ₹1typical bank test amount
- 1 dayplan for approval
1.1 Why an exchange asks who you are
Since March 2023, Indian crypto exchanges have fallen under the PMLA, India's anti-money-laundering law, and must register with FIU-IND, the Financial Intelligence Unit. Registration is an anti-money-laundering check, not a promise to protect your money.
Part of that duty is KYC, the same check your bank ran when you opened a savings account. FIU-IND rules from January 2026 add a live selfie, a ₹1 bank check and your location at sign-up.
The exchange cannot skip it for you. Your PAN also links later TDS, tax deducted at source, to Form 168, the tax statement replacing Form 26AS from April 2026.
1.2 What you need before you start
Most Indian apps ask for four things, so keep them beside you as you begin.
- Your PAN, the Permanent Account Number printed on your tax card, typed exactly as it appears there.
- A phone linked to your Aadhaar, the 12-digit ID, to receive a one-time code (OTP).
- A live selfie taken inside the app in good light, where you may be asked to blink or turn your head.
- A bank account in your own name, since most apps refuse a parent's or friend's account.
You must be 18 or older. Many apps fetch your Aadhaar and PAN through DigiLocker, the government's document wallet, after an OTP. Some accept a passport or voter ID instead of Aadhaar, so follow the route your app shows.
1.3 The steps, one screen at a time
Screens differ by app, but the order is nearly always the same. You sign up with your mobile number and confirm it with an OTP.
Next you type your PAN and verify Aadhaar, then you take the selfie and add your bank account. After that you wait for approval.
Entering the details usually takes under 15 minutes. As of November 2026, help pages say approval often takes minutes, but a manual review can take a day or two.
So start the day before you want to buy, and treat approval as a next-day job.
1.4 Why KYC fails and how to fix it
Almost every rejection is a mismatch between two records. Each row below reads the same way: what you see, why it happens, and how to fix it.
| What you see | Cause | Fix at the source |
|---|---|---|
| Name mismatch | PAN and Aadhaar spell your name in two different ways | Correct the wrong record with its issuer, then apply again |
| Blurry selfie | The room is dim, or your face is partly covered | Retake it in daylight, without a cap or a mask |
| PAN not linked | You never linked PAN to Aadhaar, so the PAN may be inoperative | Link them on the income tax e-filing portal, then retry |
| Minor | You are under 18, so you cannot sign the terms | Wait until you turn 18, then apply |
| Bank in another name | The account belongs to a parent, a spouse or a friend | Add a bank account that is in your own name |
In every row the repair happens outside the exchange, because the app cannot edit your PAN or Aadhaar.
1.5 Switch on 2FA before you deposit
2FA, two-factor authentication, asks for a second code besides your password. Turn it on before the first deposit, because an account holding money is the one a thief wants.
Some exchanges also let you add a nominee, who can claim your account if you die. Not every app offers it, so check the settings page and tell your family where the account is.
This chapter is educational only. It is not tax, legal or investment advice. Check current rules with a chartered accountant.
Next: depositing INR with UPI and bank transfer.
Key takeaways
- KYC is a legal duty for exchanges registered with FIU-IND, not a favour.
- Keep PAN, Aadhaar and bank account in the same name, and link PAN to Aadhaar.
- Fix rejections at the source, not by retrying the same upload.
- Plan one day for approval and switch on 2FA before you deposit.
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Educational & illustrative only — not investment advice. Drishti Pro publishes AI-generated trade ideas and their public track record for information. Crypto is volatile and you can lose money. Nothing here is a recommendation to buy or sell any asset. Do your own research.
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