The Supreme Court verdict on Aadhaar September 26, 2018, makes a huge dent on many Fintech Firms mainly Mobile wallet service providers, SIM Card providers, Mutual Fund Houses, and several other third-party firms. Due to safety and privacy concern, Govt. of India has barred the Private Fintech firms to fetch the UIDAI database for identity verification purpose without the exclusive consent of individuals.
Seeding of Aadhaar is not mandatory for the opening of Bank Account, getting new mobile number or admission in Schools. For that reason, many Banks have temporarily discontinued online Digital Savings Account Opening.
Before the Supreme Court Verdict, anyone can open the Mutual Fund Folios online by only Aadhaar and can invest up to Rs.50000 in any FY per AMC (Asset Management Company) without PAN Card. Now you cannot create MF folios online, you need to verify your KYC from any SEBI registered KYC registration agency like CVL, Karvy or CAMS. The Paper-based KYC verification is a cumbersome and lengthy process and it also takes more time for registration.
Here is a screenshot of a Mutual Fund House in India
You can notice that Fund Houses have already discontinued Aadhaar OTP based eKYC registration process. (Updates: Adhaar OTP based Mutual Fund Folio creation has been reintroduced.)
Here in this article, we will discuss how to do KYC for Mutual Fund online as well as from mobile Apps and hassle-free Digital registration and verification of online CKYC from Home.
What is KYC Registration Agency or KRA?
Know Your Customer or KYC Registration Agencies are SEBI (Securities and Exchange Board of India) registered intermediaries responsible for maintaining KYC records of investors in India. KRA is the agencies registered under SEBI KYC Registration Agency (KRA) Regulations, 2011. The primary job of KRA is to safely store and maintain all the KYC documents of SEBI registered KRA in Digital as well as in original form.
There are 5 KYC Registration Agencies (KRA) registered with SEBI, those are responsible for electronically & physically storing & safeguarding all the investor’s documents. Here’s the list of KRA in India
- CAMS Investor Services Private Limited
- CDSL Ventures Limited (CVL)
- DOTEX International Limited (DOTEX)
- KARVY Data Management Services Limited (KDMS)
- NSDL Database Management Limited (NDML)
KYC registration for Mutual Fund investment is something different than what we generally do for the mobile wallet or Bank Account KYC registration.
In our previous article, I have discussed in details about the current KYC Procedures for opening Zero balance digital savings bank account in India. You can read the article from here.
To invest in any Mutual Fund Scheme in India, you need to register your KYC only once with any of the above stated SEBI registered KRA.
You can check your KYC status for Mutual Fund investment from here.
For details guidelines on CKYC, visit the Official website from here.
After 2016, to simplify the separate KYC submission & verification for different Financial Institutions like Bank, Insurance companies or Mutual Fund, Govt of India has introduced CKYC or Central KYC Registry.
What is CKYC or CKYCR?
To simplify the process of multiple KYC submission for Banks, Mutual Fund investment, buying life insurance policies, Govt. of India has introduced the concept of CKYC or Central KYC Registry (CKYCR) from 1st August 2016. CKYC is the centralized KYC registration process maintained and managed by CERSAI (Central Registry of Securitization and Asset Reconstruction and Security interest of India) which is Govt. of India body.
The main purpose of CKYC or CKYCR is to reduce the burden of multiple KYC documents submission and verification for various financial works. The CKYC will work as a single entity for RBI, SEBI, IRDA, and PFRDA or the bodies regulated by the Government of India.
Central Registry of Securitization and Asset Reconstruction and Security interest of India(CERSAI) is the online security interest creation registry and only the authorized person from various Financial Institute can access the CERSAI portal. CERSAI is a centralized repository, responsible for safeguarding, storing and handling all the KYC documents in digital form on behalf of the various financial institutes in India.
CKYC is 14 digit number (KYC identifier Number or KIN) alotted by CERSAI can be used for online Mutual Fund folio creation or online Demat or Trading Account opening. Once you have CKYC Number, you can invest in Mutual Fund Online or purchase Life Insurance Policies, just you have to quate the CKYC Number to your agent.
Difference between CKYC and eKYC?
The basic difference between CKYC and eKYC is the process of capturing the KYC of any individual. eKYC is the process of KYC verification through Aadhaar Number. The authentication of Aadhaar can be done by biometric fingerprint capture or through OTP based eSignature confirmation.
CKYC is a onetime KYC verification process that can be used for multiple platforms. It is a Government of India initiative to reduce the burden of multiple KYC submission to individual investors. A single KYC identification number for all the financial transactions in India.
You can open multiple bank accounts using your CKYC number only by providing the same to the Bank. CKYC is now mandatory for all financial transactions in India.
Some fields are mandatory for CKYC, these are KYC documents for correspondence address, mother’s name, IPV (in-Person Verification) and FATCA declaration which is already in CKYC form. Though PAN Number is not mandatory for CKYC, (submission of Form 16 declaring annual income is enough) still you need the PAN for online Mutual Fund Folio creation. Therefore PAN number is a must for online KYC registration for Mutual Fund.
Updates: As per the latest RBI guidelines, Banks and Fintech agencies can access the user’s Aadhaar Data only after getting consent from the applicant.
You can download the CKYC form here.
After successful completion of the CKYC process, you can provide the KIN to successive financial transaction in Banks, Mutual Fund, Demat Account opening or Buying Insurance policies.
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How to get the CKYC Number online?
Currently, you can not check CKYC ID online, though you can follow some method to get the CKYC Number.
- Email or Text message: If you applied for the opening of an account in any Bank, Mutual Fund or Demat services, you may get your CKYC Number by Email or Text message.
- If you already have invested in any Mutual Fund scheme, you can find your CKYC Number from Karvy Website. To find your CKYC Number visit here. You will find a page like below.
Please remember that if you already have registered your KYC by the older method, then your CKYC ID will not be reflected here.
3. If you make any modification of your Bank, Mutual Fund or Demat Account KYC details, then you will also get an email notification mentioning your CKYC ID and an updated copy of KYC attachment.
You may note down the CKYC Number for future references.
How to Do KYC for Mutual Fund Online?
After recent Supreme Court verdict on Aadhaar, Aadhaar OTP based Mutual Fund KYC registration has been discontinued by all Mutual Fund Houses. You have to provide PAN with valid KYC documents and Complete IPV(In-Person Verification) process for online Mutual Fund Folio creation.
You can do KYC for Mutual Fund online from your mobile as well as PC, you do not have to visit any Mutual Fund houses or RTA agents Office like CAMS or KARVY.
Online Mutual Fund KYC Registration from Karvy Website.
You can register for new KYC online for Mutual Fund Investment from Karvy Website. To register a new online KYC visit here. (Official Website Link).
Please remember that you only need to register your KYC once for Mutual Fund investment. After KYC verification, you can invest in any Mutual Fund’s direct scheme from AMC’s Official websites (HDFC MF, LNT MF, UTI MF, etc) or from the RTA (Register & Transfer Agents) like CAMS or Karvy. Always try to invest in Direct schemes of Mutual Fund instead of Regular Mutual Fund Schemes, if you want to avoid paying brokerages to your Advisors. I have already discussed types of Mutual Fund invest in India, you can read the article from here.
In the above case of Karvy, only register your KYC for verification, do not invest from Karvy subsidiaries, Karvy Stock Broking Ltd, you only can invest in regular Mutual Fund Scheme, not in direct Mutual Fund Schemes. Once verified your KYC, you can purchase online Mutual Fund Lumpsum units or register for Direct SIP (Systematic Investment Plan) directly from Fund Houses just verifying your PAN.
Registration for new KYC for mutual fund online from Karvy website is a very easy process, just fill up the details. Be sure to keep a scanned copy of cheque leaf or Bank account statements not older than three months clearly showing the Name of the Account holder, Account Number, IFSC & MICR code.
Visit Karvy Official Site for Online KYC Registration. You can also visit here.
Alternatively, you can also apply for New CKYC online from Sundaram BNP Paribas Fund Services Limited.
Online Mutual Fund KYC Registration from Sundaram BNP Paribas Fund Services Limited
To create online CKYC, visit the Official website of Sundaram BNP Paribas Mutual Fund Website from here. You need the followings to apply for new CKYC online
- Webcam for IPV or Skype ID
- Self-attested Official Valid documents like Passport, Aadhaar Card for Address Proof.
- Self-attested PAN Card.
Just fill up the details and submit.
On the next page, you have to provide the various details like Address for Correspondence, Bank information, Additional KYC details and upload the self-attested KYC documents.
After the submission of entire details, you have to go through in-person verification (IPV).
IPV (In-Person Verification)
As per SEBI circular, all individual investors who want to open Demat or Trading Account or invest in Mutual Fund scheme in India, need to verify KYC documents personally. IPV is a compulsory regulatory process each investor must go through before opening or investing in Mutual Fund or opening a Demat Account, as per SEBI rule. Each intermediary is responsible for collecting and verifying KYC documents of its client.
IPV was previously an Offline process, where any new investor had to submit KYC documents to the brokers or KRA for physical verification. Now you can complete the IPV process online by capturing a short video of 10 seconds. Just you have to show your PAN and readout your name as per your PAN Card. You have to capture the IPV video on your PC or Laptop’s webcam.
Online Mutual Fund KYC registration from Mobile App
You can also register new KYC for Mutual Fund online from your mobile App. There are quite a few good Mutual Fund app already available in the Android Play store or iOS App Store. Here, we will discuss how to register new KYC for the mutual fund by Paytm Money Mutual Fund App.
Register New Mutual Fund KYC by Paytm Money Mutual Fund App
Step-1: Login to Paytm Money mutual Fund App with your existing Paytm user ID and Password.
Step-2: Enter your PAN Number and Start the online Mutual Fund KYC registration process.
Step-3: If your PAN is not KYC verified, it will show a message like below.
Step-4: Upload Your PAN Card by capturing the PAN or uploading the existing PAN image. The proper PAN image should be like that
After Clicking NEXT, you have to provide your personal details by selecting ADD on the next screen.
Fill Personal details, upload your photo, capture your signature by writing on the phone screen or upload the signature photo and save.
After saving your photo and signature, you have to complete In-personal Verification. You will find a sample video of How to record in-person Verification for online KYC registration for Mutual Fund. It’s a 5 to 10 seconds video where you have to clearly speak out your name as per PAN details by holding the PAN Card in front of the camera.
Similarly, you have to Add the Address Details and upload the Address Proof documents.
Upload both the front and back side of the Address clearly showing the PIN Code and save.
Similarly, ADD nominee details and proceed for Bank details.
Paytm Money Mutual Fund has a very smooth process of linking Bank Account details. You will provide your Bank details like Account Number, IFSC code. Paytm will deposit Rs.1.00 to your Bank Account to confirm and linked the same with Paytm Money Mutual Fund App.
This is the best and easiest process for new registration of KYC for Mutual Fund online in India. By a similar process, you can register for new KYC from other Mutual Funds Apps like Groww or ETMoney.
After a few days, you can check your KYC status online from any KRA websites or from here. Once KYC verified, you will be shown the option like below
Now, you can invest in any Mutual Fund’s direct schemes by providing your PAN Number only. You can create new Mutual Fund Folio directly from Mutual Fund House’s official websites like HDFCMF, ICICIPru or Reliance Mutual Fund, etc or from KRA like Cams or Karvy. You can also invest from Mutual Fund Mobile Apps like Paytm Money or Groww.
These are some methods by which you can register for new KYC or CKYC online to invest in Mutual Fund Direct Scheme.
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