After Aadhaar based authentication was discontinued, the MF industry has found innovative ways to digitally on board new clients to save costs and time.
Many fund houses, national distributors and RTAs have started facilitating video KYC system to help distributors on board their clients within few minutes.
Tata MF, Reliance MF, Kotak MF and Quantum MF, national distributors like Fundsindia.com and RTAs like CAMS and Karvy have started video KYC to help you on board new clients.
Let us look at how you can use video KYC to on board a new client.
To begin with, you need to upload KYC documents of your clients such as photograph, Pan card, address proof and a cancelled cheque on AMC website. Your clients can share their Aadhaar card copy as a valid address proof. However, remember that they need to mask the first eight digit of their Aadhaar before uploading it on video KYC platform. An unmasked Aadhaar is not a valid KYC proof.
After uploading these documents, investors need to start real-time video recording using the front camera on their smartphone or the computer’s webcam and display the hard copies of all the required documents. Now, to complete the process, investors have to say ‘Hi’ and in some cases their date of birth during the video recording.
If this In person verification fails, most video KYC facilitators will call your clients to do it manually through skype.
Pre-requisites for the video KYC
- Camera enabled device such as mobile, laptop and desktop
- Distributor or AMC person has to complete the KYC in person
- eAadhar from UIDAI site for Aadhar based eKYC (URL is https://eaadhaar.uidai.gov.in/#/)
- Address proof and ID proof is mandatory if customer wants to do non-aadhaar based KYC
Benefits
- Completely paperless and online KYC solution
- Less turnaround time
- Integration with KRAs
- Covers PAN and PAN exempt cases
- Saves your time and cost
Limitation
As things stand now, video KYC cannot be used to complete pending KYCs cases. Industry experts feel if this limitation of video KYC could be eliminated, it would help existing investors and distributors who are currently finding it difficult to complete pending KYC within the three month deadline.
