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.
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 and will be known as Central KYC or CKYC.
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 EKYC done?
Thankfully, several agencies specially mutual funds have jumped onto the bandwagon to help you do your KYC. Mutual Funds houses such as Aditya Birla SunLife, Nippon, Quantum, ICICI Pru, etc are offering online facility to enable this.
There are caveats though. Some fund houses expect you to make an investment with them. So, as long as you plan to invest with them, this should not bother you.
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. However, they have temporarily disabled the option.
If you contact them, they may provide an alternative means to carry out the process.
In the meanwhile, ICICI Pru Mutual Fund has come with a completely online process to do KYC in association with Signzy.
Some of the key features of online KYC service are:
- 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.
- This process is valid for only new KYCs. You cannot update your KYC for any changes using this process. All changes are to be processed via offline applications.
Once you submit the required information, it takes about 2 weeks for your KYC to be registered.
How to do your KYC with ICICI Pru MF in 10 minutes?
Before you proceed, keep the following ready.
- Latest Web browser – Chrome/Firefox/Mozilla
- A reasonably smooth internet connection.
- Working Web camera & microphone
- Identify Proof – PAN card
- Address Proof as one of Aadhar card, Voter ID, Driving License and Passport
- Cancelled Cheque (for bank account verification)
- Signature Scan copy
Once you are ready:
- Go to https://www.icicipruamc.com/online-kyc. (For best results, use Chrome browser)
- Enter your Name, PAN, Email and Mobile. The system checks if it is a valid PAN.
- On the next page, you will get to view all the required documents as mentioned before.
- In a step by step process, you will upload all the documents.
- 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.