Now get your Central KYC done completely online, paperless!

CENTRAL KYC

One of the biggest pain points in mutual fund investing has been the KYC or Know your Customer. Most likely you have gone through it.

Initially, it was a plain simple application in a physical form with basic investor details. Subsequently, an In Person Verification or IPV was made mandatory.

To add to the pain, in 2015, FATCA and Additional KYC details were also required to be submitted. If you did not do that, your future investments would not be accepted and you would not be able to redeem your existing investments.

For a long time, investors and service providers alike were asking why does one need to to multiple KYCs. Why can’t the system use the KYC done at once place with another service provider? This time probably the policy makers heard it.

So, a new initiative called the Central KYC Registry was started in July/August 2016. Now, all KYCs across financial services have to sit in this Central KYC Registry.

The purpose of the Central KYC registry is that if your KYC is now done once with any of the financial services company that you deal with, you would never to have to do it again. Also, any update to your KYC information can be done with any of the industry participants (Banks, Mutual Funds, Insurance Companies, Investment Advisors, etc) and it will reflect across via the Central KYC.

Just for its intention, this is a very good step. Central KYC not only saves all the paper that was being wasted every time you signed up for one of the products or services, it also saves any hassle to the investor.

Now the big question – how do you get your Central KYC done?

Thankfully, several agencies specially mutual funds have jumped onto the bandwagon to help you do your KYC. Mutual Funds houses such as Birla SunLife, Reliance, Quantum, etc are offering online facility to enable this.

There are caveats though. With fund houses like Birla and Reliance, they expect you to make an investment with them. So, as long as you plan to invest with them, this should not bother you.

Additionally, Birla MF expects you to send the physical copy of the application and the document to one of their offices. This cannot be called ‘completely online’.

The one service which does it without any obligation (except for your permission to send marketing messages to your email) is that of Quantum Mutual Fund.

Some of the key features of online KYC service of Quantum MF are:

  • You are under no obligation to invest in any of its fund schemes.
  • You do not need to send any physical documents.
  • The whole process is instant without delay or need for any person visiting your place or online for doing IPV.

Once you submit the required information, it takes about 2 weeks for your KYC to be registered.

How to do your KYC with Quantum MF in 10 minutes?

Before you proceed, keep the following ready.

  • A reasonably smooth internet connection.
  • Working Web camera.
  • Self attested and scanned copies of your PAN card and Aadhar card.
  • Signature on a plain paper.

Once you are ready:

  1. Go to eKYC.quantumamc.com. (For best results, use Chrome browser)
  2. Enter your PAN. The system checks if it is a valid PAN and if you are already KYC verified.
  3. If you are already KYC verified, it will alert you and ask you if you wish to modify your KYC details. Press Continue, if you want to modify.
  4. Enter your Name, Mobile Number, Email and Aadhar (UID) Number.
  5. Tick the check box to accept to receive communication from the AMC and then submit.
  6. On the next page, your add more of your personal details required for Central KYC.
  7. Upload self-certified copies of your PAN card and your Aadhar card.
  8. You add your photo by clicking via your device camera. (Yes, be dressed properly)
  9. For your signature, you can sign on a plain piece of paper and show it to the device camera and capture it.
  10. Next is IPV or In person verification. Your IPV is done via a live video recording through your device camera.
  11. Confirm all the information you have provided and submit.

It’s done. Yes, your KYC is now uploaded to the Central KYC servers and it is verified and registered within 2 weeks. You will also receive an email communication stating the same.

How is it different from Aadhar based eKYC?

With Aadhar based eKYC, OTP verification is used to do your KYC. This is instant and there is no waiting. You can start investing immediately.

However, this KYC is limited in nature. You can invest only upto Rs. 50,000 in a fund in one year.  With Central KYC, there is no investment limit.

In fact, mutual funds such as SBI as also CAMS and Karvy offer only Aadhar based eKYC. If you want Central KYC to be done through them, they require an In Person Verification through one of the registered intermediaries, which could mean a physical appearance.

TIP: To begin investing in mutual funds, you can first do your Aadhar based eKYC and then update the same to a normal, proper KYC.

The biggest benefit of online KYC

The biggest benefit of online KYC is to people residing at distant locations including NRIs. Using this feature, you can now get your KYC done. So, get going!

And once your KYC is registered, take the next step to create your online CAN. Here’s how.


Do let us know your experience of doing Central KYC online.

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8 Comments
  1. sai 2 weeks ago

    It is a very good experience for me with quantum in doing my ekyc. they have pioneered in this thing especially the feature of eipv. As explained by you in the article it happened in the same way for me .simply just follow the process mentioned by you.Best part they are not insisting that after making investment only they will do your kyc. After submitting the application i got the kyc updated exactly after 2 weeks.i got a email and SMS from CKYC saying that my kyc has been registered in the CKYC database and a CKYC identifier no.they have given to me.Thanks vipin for writing such a good article in simple words in your style :)

  2. Surbh 2 weeks ago

    Good article. One thing is not clear though. In the section How is it different from Aadhar based eKYC?, you have said that “However, this KYC is limited in nature. You can invest only upto Rs. 50,000 in a fund in one year.”
    Do you mean to say that if we do our KYC through Quantum MF, we can invest only upto 50K in a fund in one year?

    • Author
      Vipin Khandelwal 2 weeks ago

      50,000 per fund per year is what it means and is applicable to Aadhar based eKYC. The one explained in the article is for Central KYC with IPV. Aadhar based eKYC is offered by most fund houses as well as CAMS and Karvy. Hope this clarifies.

  3. Riyaz 2 weeks ago

    Will our existing KYC will be ported to Central KYC (I already have KYC and investing in MF) or we have to do this eKYC?

  4. NK Vijayvargiya 6 days ago

    Hello Vipin, I am already a KYC compliant and investing in mutual funds. Do I have to follow this process to get CKYC done or my existing KYC details along with FATCA and additional KYC details will be uploaded to CKYC? Kindly clarify. Thanks, NK Vijayvargiya

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