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. I have certainly.
From just a plain application in a physical to a mandatory In Person Verification or IPV. Then came along, in 2015, FATCA and Additional KYC details.
The worst is you need a KYC with every new service provider including a bank, mutual fund, insurance company, etc. I always wondered why can’t the system use just one KYC. This time probably the policy makers heard it and decided to make financial lives easier.
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.
Now the big question – how do you get your Central KYC done?
While several service providers offer a facility to create a new KYC or update one, the one that stands out is from Quantum MF.
It 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?
I recently did a fresh KYC as well as updated my own and it was super fast. To ensure it happens hassle free, ensure:
- A reasonably smooth internet connection.
- Working Web camera attached to your computer.
- 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.
- 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.
Between you and me: So, that was my experience of updating the KYC. Do share your experience of doing a new or updating your Central KYC online.