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One of our readers wrote to us with query:
I have been hearing from my industry colleagues - AMCs and RTAs that investors can no longer invest in mutual funds without valid email ID and mobile number.
I have a new client who is 75-year old. He does not have any email id. He does not want to create an email id due to security concerns.
He wants to invest Rs.30 lakh in mutual funds but I am finding it difficult to do his KYC without email ID and phone number. What should I do now?
Chandan Ghosh, Prudent Wealth, Siliguri
Dear Chandan,
Thanks for writing to us and raising this issue.
Many people believe that email id and mobile number is mandatory to invest in mutual funds due to implementation of two-factor authentication. However, investors can continue to invest in mutual funds without having email id or phone number.
Such an investment and KYC request have to be made physically at any of the point of sales of RTA or AMC branch office. Another condition is that your client cannot use Aadhaar as officially valid document (OVD).
Your client can use any other document as address proof like passport, voter ID or driving license. This address proof has to accompany another document like latest utility bill – electricity or gas or property tax receipt for verification.
If he does not have utility bill or property tax receipt, he can submit copy of pension or family pension payment orders (PPOs) issued to retired employees by government departments or public sector undertakings, if they contain the address. He can also submit a letter of allotment of accommodation from employer issued by state government or central government departments, statutory or regulatory bodies, PSUs, scheduled commercial banks, financial institutions and listed companies and leave and licence agreements with such employers allotting official accommodation.
Since this KYC will not be uploaded on CKYCR records, there is no need to put email id and phone mobile. You may keep the designation space or part 4 of KYC form blank, which captures email and mobile number and submit it to the designated RTA or AMC official.
Such a client has to make a physical request to redeem his money as he cannot undergo two-factor authentication due to absence of email ID and mobile number.
Another solution is using Aadhaar as OVD and sharing email id of a family member by giving a declaration. In this case, the client can give email id of dependent children or dependent siblings.
I hope we have addressed your query.
Regards,
Team Cafemutual
