eKYC for Mutual Fund Investment in India: A Brief Guide
Know Your Customer/Client (KYC) is a mandatory process to identify the credentials of individual clients and is used to store and verify the details. This helps in verifying and confirming the authenticity of the client. Traditionally, the details such as the full name of the customer, address, and date of birth would be captured using physical forms along with Aadhar Card and Pancard. However, this process can be completed online from the comfort of your home. Let’s understand the seamless process of eKYC for Mutual Funds.
The eKYC allows you to complete the Aadhar verification through OTP verification. You can apply for eKYC through any third party also known as a KYC registration agency (KRA) which is registered with The Securities and Exchange Board of India (SEBI). Are you worried because you don’t have an Aadhar card? You don’t have to worry as you can opt for video verification too. That’s how simple it is.
This is how the eKYC process works:
- You have to log into the KRA website or KRA platform to enter your basic information such as full name, PAN number, address, AMC name, bank details, date of birth, etc.
- Ensure you enter the phone number and email ID that is linked to Aadhar.
- You will receive OTP on your registered phone number and email ID. If you do not receive this OTP on your registered email ID or phone number then try again after refreshing the page.
- Please enter the OTP. If the OTP you entered is correct you will receive a confirmation.
- After the successful authentication process, you will be required to upload a self-attested copy of your Aadhar.
- “Consent declaration” will pop up that you will have to accept to proceed with the further process.
- The verification process will begin in the background. If the verification is completed, you will receive a pop-up stating that the verification is successful.
- Now you are free to invest in Mutual funds.
eKYC using biometric authentication:
To opt for biometric authentication, you will be required to visit the AMC. The biometric machine captures your biometric data. On completion of the verification, you will receive the bio key. All you have to do is enter the Aadhar card number and bio key to complete the biometric process. There is no upper limit on mutual fund transactions if you finish the biometric authentication. Otherwise, the transaction is limited to up to 50,000 per year per AMC.
Some incredible benefits of eKYC:
- Currently ~900 million people have Aadhar and ~170 million people have Pancard. This allows for a seamless process for AMC and KRAs.
- The eKYC process doesn’t require you to submit a stack of physical documents such as address proof, ration card, date of birth proof, etc.
- The simple customer experience encourages more investors to opt for mutual funds.
- The stricter measures and multi-level authentication process robust security.
So, this is how you can complete your eKYC process without any hassle. For more information please connect with us.
