In order to simplify on boarding process of new investors in mutual funds, Karvy Computershare has started facilitating Aadhaar based eKYC on the website of Quantum MF. Very soon, the R&T will extend this facility across all its serviced fund houses.
Under this facility, new investors having Aadhaar card and PAN can easily complete their KYC process. All they need to do is key in their details in a KYC form and submit it. The system will detect that KYC status is not verified as per latest KYC norms and ask them to key in their Aadhaar card number. Once they enter the number, the system will land them on transaction page. After completing transaction, the customer relationship officer of Karvy Computershare will contact them to complete the eKYC process.
Simply put, investors can invest in mutual funds at a click of button without submitting KYC forms and doing in-person verification (IPV). Investors can open a folio and start transacting in direct and regular plans.
Guardians on behalf of minors can also invest through this procedure. The similar process will be applicable to all joint holders too, if they are not KYC compliant.
However, SEBI rules say that investors can invest up to Rs.50000 per financial year per mutual fund through this facility. Investors who wish to invest more than this limit need to undergo IPV or biometric either through online authentication or visiting Karvy’s point of service.
In an email sent to Cafemutual, V Ganesh, CEO of Karvy Computershare said that Aadhaar based eKYC provides a great opportunity for AMCs and distributors to target the untapped segment of non-KYC compliant population. He said it will help distributors and AMCs to build additional assets.
CAMS too has launched Aadhaar based eKYC of MF investors.
Recently, three fund houses – Reliance, Quantum and Birla Sun Life have introduced the eKYC service which aims to expedite the process of client verification and reduce paperwork for distributors.
Banks and insurance companies are already using Aadhaar linked e-KYC service to carry out their KYC verification procedure. However, many banks and insurance companies insist on submitting physical documents even after carrying out e-KYC.
