Nilekani panel recommends simplifying KYC process for mutual fund investing

Proposes allowing MF investing with KYC-compliant bank account; move will help penetration in B-30 markets

The Reserve Bank of India’s (RBI’s) committee — led by Infosys co-founder Nandan Nilekani — has recommended simplifying the know-your-customer (KYC) process for mutual fund (MF) investing. The committee has said that a KYC-compliant bank account can be used for opening an MF account, provided the investment and refund are routed through the same account. 

Industry experts say the move will ease KYC compliance for MF investors and give fillip to MF penetration ‘beyond the top 30’ cities — widely-known as ‘B30 cities’ in industry parlance.  

The high-level committee on deepening of digital payments in its report said: “There are various use