With SEBI relaxing KYC norms in mutual fund, PMS and AIF, distributors can onboard new clients even during nationwide lockdown easily.
Distributors are no longer required to do physical in person verification (IPV) of their clients. You can ask your clients to undergo KYC using Aadhaar based authentication and submit necessary documents like PAN card, address proof and bank details verified by ‘Digilocker’.
Your client can store all statutory documents like Aadhar Card, PAN Card, driving license and other such documents in Digilocker app launched by Government of India. While the app retrieves all statutory documents, your clients can upload it manually by clicking picture of documents.
If your clients do not use Digilocker, you can tell them to use eSign facility of UIDAI to share documents. eSign is an online electronic signature service that facilitates Aadhaar holders to forward digitally signed documents.
Both these methods eliminate requirement of wet signature. You can share these documents with AMCs and RTAs through email.
In addition, if your clients are not comfortable with these two methods, you can complete their KYC through video KYC.
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/RTA website. Your clients can upload their eAadhaar card copy as a valid address proof as it masks the first eight digit of their Aadhaar. 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 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
- eAadhaar 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
