The mutual fund industry is moving towards paperless investing. BankBazaar.com, online distribution and robo advisory firm, has launched its paperless electronic KYC (e-KYC) service.
e-KYC enables intermediaries to complete KYC process online with direct authorization from clients. The objective of e-KYC is to reduce turnaround time and paper work. SEBI currently permits investments of Rs. 50,000 in a financial year per AMC for investors using Aadhaar based eKYC using OTP based authentication.
Through BankBazaar platform, investors can evaluate, select and invest in mutual funds within minutes, claims the company.
Currently, BankBazaar’s MF platform allows lumpsum investments. Going ahead, it will allow investors to start SIPs.
Last year, fund houses like Birla Sun Life, Quantum and Reliance had introduced e-KYC service with a view to expedite the process of client verification and reduce paperwork for distributors.
