SEBI appointed committee headed by Nandan Nilekani which is tasked with overseeing systems and processes in the mutual fund industry has recommended increasing the Aadhar based KYC investment cap from the current Rs. 50,000 to Rs. 2 lakh per financial year per mutual fund, said two officials familiar with the development.
This discussion reportedly took place at a AMFI meeting held today in Mumbai.
Currently, investors can invest up to Rs.50,000 per financial year per mutual fund using one time password (OTP) through eKYC. However, investors who wish to invest more than this limit need to undergo IPV or biometric based authentication. If the committee’s recommendation is accepted by SEBI, investors can invest in mutual funds on a real time basis, say fund officials.
A number of fund houses and R&Ts have launched eKYC service for investors to expedite the process of client verification and reduce paperwork for distributors.
