The SEBI committee headed by Nandan Nilekani is said to have recommended allowing Aadhaar as valid KYC to invest (on the spot) in mutual funds through the online route.
This was discussed in the AMFI board meeting held in Mumbai yesterday. Sources said that SEBI has shared this development with AMFI.
This new terminology is called as ‘easy KYC’. Under this facility, investors who want to invest up to Rs.50,000 through the online route can furnish Aadhaar number as a valid KYC proof. This will help investors invest in mutual funds swiftly. The system will generate one-time password (OTP) which will be sent to investor’s mobile number. This will help verify the transaction instantly.
However, investors who wish to invest above Rs.50,000 will have to verify the transaction through biometric proof i.e. thumb impression or iris scan.
Sources said that the committee is also discussing the possibility of including bank pass book under this facility.
Two months back, SEBI had constituted this committee to recommend measures to reduce cost structure of mutual funds.
