MF News Soon KYC modification can happen online: AMFI

Soon KYC modification can happen online: AMFI

Issues with the existing KYC procedure will be resolved with advent of 5G technology, said AMFI CEO.

Nishant Patnaik Jun 6, 2023

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The Rs.41 lakh crore MF industry is heading towards setting up a robust KYC mechanism that will simplify the existing KYC procedure.

In fact, the MF industry will facilitate KYC modification completely online with advent of 5G technology, said NS Venkatesh, CEO, AMFI. He was speaking at the Independent Consultants & Advisor Association (ICAA).

He said the MF industry and RTAs have been working to make KYC modification process completely online. While the industry currently facilitates online KYC at the time of onboarding, modification of KYC still happens through physical route.

Further, Venkatesh said that AMFI has consulted PwC to understand how they can increase the scope of AMFI to match with the global best practices.

Highlighting the opportunities in the MF industry, Venkatesh said India has over 40 crore PAN card holders and over 8 crore people have filed income tax returns. Currently, the MF industry has 4 crore investors which indicates that the industry has a long way to go, said AMFI CEO.

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4 Comments

Anurag Dureha · 1 year ago `

A welcome move. The biggest problem is with RTAs. Investors update their details in demat accounts but those are not updated or partially updated by RTAs. Investors keep receiving reminders from RTAs for missing info. SEBI holds distributors or sub-distributors responsible for this. Actually, SEBI needs to be stricter with RTAs and needs to have better control over them. I hope with such modifications in system and procedures, there will be less reliance on RTAs and fewer pain points for the investors and distributors.

DEBRAJSENGUPTA · 1 year ago `

It is a welcome move as numerous Investors an Distributors go through painful journey to modify their KYC details. And it does not stop there. If somebody updates/modifies KYC at on AMC the data does not get populated across AMC. Some site RTC issues, some claim they follow different procedures etc. Complete Online facility with robust infrasturcture to help AMCs fetch the modified details, and RTAs updating the same across Folios is actually need of the hour. Sooner it is done, it is better.

InvestAir Funds · 1 year ago `

Most awaited step. It will definitely help Clients from B30 cities and rural areas. But it is difficult to understand the role of 5G in the procedure.

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