Leading transfer agency Computer Age Management Services (CAMS) has made Know Your Customer (KYC) completely paperless on the basis of investors' Aadhaar number.
The move comes after market regulator Securities and Exchange Board of India (Sebi) recently enabled Aadhaar-based e-KYC verification service.
With this move, investors who wish to use their Aadhaar number and Permanent Account Number (PAN) for KYC compliance, can now complete KYC process in only three steps. The process lets investors do away with the earlier process wherein they needed to submit forms and other related documents.
CAMS has its mobile application myCAMs as well as its online portal wherein investors can do their paper less KYC instantaneously. Rhe physical form-filling process usually takes 3-4 days to complete.
Investments in mutual fund products require customer to be KYC compliant as per the Sebi's regulations. Although many online platforms had come up over the last few years but KYC had remained a big hurdle for the industry. Sector officials had long been demanding the need to make KYC process as Aadhaar-based.
NK Prasad, President & CEO, CAMS says, "CAMS is pleased to enable Aadhaar based eKYC and instant account opening for mutual funds and support distributor fraternity to carry out their business far more conveniently and also grow their business in new markets where there are no physical official points of transactions. Embracing eKYC, online account opening and online payment brings simplicity and speed and will have far reaching benefits to make Mutual Funds an accessible investment category. Mutual fund penetration with citizens especially in Tier 2 and 3 towns can be accelerated with Aadhaar-based eKYC."
Investing in mutual funds will be more convenient and less time consuming. In-person verification (IPV) is not required if it is Aadhaar-based. Not only will it cut time for the distributors and the AMCs but also substantially reduce costs for distributors to acquire new customers and service them.