To support new mutual fund investors, Computer Age Management Services (CAMS) Limited, India's leading IT firm, has launched an e-KYC facility centered on a one-time password based Aadhaar verification. CAMS has created a platform that will facilitate new investors to finish the KYC process electronically using OTP-based Aadhaar authentication without any inconveniences, in accordance with the regulations. According to the firm, this eKYC via Aadhaar authentication service would enable investors to invest in mutual funds with nominal exertion or restrictions as now they do not have to go through the previous XML-based verification. CAMS and CAMS Investor Services Pvt Ltd. were two of the eight securities market companies given permission to conduct Aadhaar Authentication. CAMS CEO Anuj Kumar said, "We are extremely happy to have successfully cleared the thorough standards of privacy and security compliance checks to undertake OTP based Aadhaar authentication for e- KYC." He further added that, "This will definitely make onboarding of new investors a lot more efficient and most importantly simpler and less time consuming."
How does eKYC using OTP based Aadhaar verification work?
- Investors must have a mobile number and an email address and at least one should have linked with Aadhaar.
- Once UIDAI validation is complete, CAMS will send an OTP to both mobile number and email address.
- Following successful OTP authentication, the investor must upload a PAN copy that has been verified by NSDL.
- UIDAI will send an OTP to the investor's registered mobile or email address for address proof authentication.
- UIDAI will provide Aadhaar PDF and investor photo upon successful OTP verification.
- The investor will then be required to enter additional details such as resident status, profession, and so on.
- The investor then must upload a signed cancelled cheque. Bank details will be automatically filled based on OCR. The name on the cheque must match the name in the PAN for IMPS verification.
- The investor will be allowed to upload e-signature if there is a 70+% name match.
- Upon successfull submission of your details, your KYC status will change to Under Process, and your PAN will be available to invest in.
- For more details, click here.