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:
- Go to eKYC.quantumamc.com. (For best results, use Chrome browser)
- Enter your PAN. The system checks if it is a valid PAN and if you are already KYC verified.
- 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.
- Enter your Name, Mobile Number, Email and Aadhar (UID) Number.
- Tick the check box to accept to receive communication from the AMC and then submit.
- On the next page, your add more of your personal details required for Central KYC.
- Upload self-certified copies of your PAN card and your Aadhar card.
- You add your photo by clicking via your device camera. (Yes, be dressed properly)
- For your signature, you can sign on a plain piece of paper and show it to the device camera and capture it.
- Next is IPV or In person verification. Your IPV is done via a live video recording through your device camera.
- 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.