With the UIDAI allowing financial institution to do Aadhaar based authentication through QR code imprinted on Aadhaar, a few fund houses and R&T agents have started helping IFAs carry out KYC to on board new customers immediately.
While a few fund houses – Reliance MF, Kotak MF and Quantum MF and national distributors like Fundsindia.com have started video based KYC, R&T agents such as CAMS and Karvy have been relying on Quick Response (QR) code to do KYC to onboard new clients.
In a video KYC, you can ask your clients to upload KYC documents such as Pan card, photograph, address proof and a cancelled cheque on AMC website. Once your clients upload these documents, the system will start real time video recording using the front camera on laptop or mobile. Your clients will have to display the uploaded documents for a few seconds to get it done. If this IPV fails, the fund house will call your clients to do it manually through skype.
Similarly, CAMS and Karvy Fintech have launched alternate eKYC solution using the QR code option. Quick Response (QR) code is like barcode that can be read through a device/software to speed up the process.
Karvy Fintech provides an additional option to do eKYC through XML based offline e-KYC for regular, PAN exempt & IPV exempt categories. XML or Extensible Markup Language (XML) encodes documents in both human-readable and machine-readable.
Here are steps to be followed to do KYC through CAMS
Steps to be followed on Karvy Fintech website
- Select option as PAN/ PAN exempt KYC as the case may be
- Key in PAN/ PAN exempt ID details, mobile number and email ID.
- PAN validation where applicable
- Generate and upload offline (QR pdf / XML) eAadhaar file through a guided process
- Input additional mandatory KYC information
- Upload copy of the selected ID proof and specimen signature
- Lastly, complete the video IPV
Earlier, UIDAI has asked KYC registration agencies (KRAs) to stop doing Aadhaar based authentication for eKYC. In fact, online distributors, fund houses and R&T agents using Aadhaar based eKYC for onboarding new clients have discontinued doing eKYC.
With AMCs and R&T agents developing a web or mobile app to read QR code printed on Aadhaar card to do KYC, the turnaround time and cost to onboard a new client has reduced substantially.
To ease the onboarding process further, UIDAI is said to have been considering to use a live picture of customer with time stamp and photo of a government-issued ID card. Customers can upload their live photograph along with the valid ID proof to complete the KYC process.
