Electronic know-your-client process or eKYC offers convenience for mutual fund investors. Through this facility, you can complete the KYC process online without going personally or sending physical documents. Recently, mutual fund registrar and transfer (R&T) agency, Computer Age Management Services Pvt. Ltd (CAMS), launched the KYC service which along with its myCAMS facility will help new investors start investing and even start transacting, all in one sitting. Karvy Compushare Ltd, too, has launched the eKYC facility through Quantum Asset Management Co. Pvt. Ltd at moment. Here is a look at how CAMS’ eKYC facility works.
You need to have a valid permanent account number (PAN) and Aadhaar number to use this facility. The objective here is to use details given for your Aadhaar verification for mutual fund-related KYC.
The process involves entering this data along with other basic personal information, which will enable you to start using the myCAMS facility, and transact immediately in mutual funds that are enabled with the platform. You will also have to upload a copy of your Aadhaar card. Once this is done, you will receive a one-time password on the Aadhaar-registered mobile phone number, which will be used for authentication and verification.
Usually, this step is followed by an online video in-person verification (IPV), however, in the case of CAMS, this is not required because it has been appointed as an authentication user agency by the Unique Identification Authority of India (UIDAI). Therefore, a web-based IPV is not required. You are also not required to send in any further documents.
The KYC process is now complete. You can now start transacting on myCAMS, and you can invest across mutual fund schemes of all fund houses using the KYC number. However, keep in mind that as per regulations, you will be able to transact for up to a value of 50,000 per fund house per year. If you want to enhance this limit, you will have to go to a notified R&T agency service centre and complete a biometric or IPV process, and then you can invest higher amounts immediately.
To link your bank account for transactions, you will have to upload a scanned copy of a cancelled cheque. Subsequently, eKYC may get facilitated through CAMS directly on fund houses’ websites.
Mint Money take
Reducing the time taken to initiate a new transaction (by a new investor) is a positive development for the industry and for you. Reliance Capital Asset Management Ltd and Birla Sun Life Asset Management Co. Ltd started the eKYC process sometime back. Now, with CAMS and Karvy also launching this facility, soon, the need for physical documentation for KYC will become redundant and new investors can move towards seamless and quicker transactions. However, the process is still evolving.
At present, you still have to scan documents which takes time if you don’t have a scanner. But the processes are likely to evolve further, allowing for an uninterrupted account opening to transaction link.