4 Standardized KYC Processes Can Now Ease Your Investment Process

Given the fact that digital KYC or know your customer has been in place for long but no institutions followed similar standards, the government as well as the SEBI have come forth amid the pandemic-led lockdown and instructed to move to a simpler and standardized protocol to comply with KYC procedure.

4 Standardized KYC Processes Can Now Ease Your Investment Process

Here are the different KYC procedure standardized for some of the below given institutions:

Aadhaar-based KYC: Some 9 entities for transactions undertaken through them can carry out aadhaar based authentication or aadhaar-based eKYC. These entities are BSE Ltd and National Stock Exchange, Central Depository Services (India) Ltd, CDSL Ventures Ltd, CAMS Investor Services Pvt. Ltd and Link Intime India Pvt. Ltd.

This was released in a government notification dated April 22 which asked to make the KYC process totally digital. And this has been granted as the centre is satisfied with these entities on complying with privacy and security standards under the under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

Then the SEBI came up on the issue and allowed technological use for it. Here are other KYC procedures allowed for intermediaries to comply with the KYC guidelines.

- Digilocker: SEBI has now allowed matching of documents provided by the client with the central government's data repository maintained in DigiLocker. So, herein all the documents preserved in the DigiLocker shall be deemed as the originals.

- In-Person Verification or IPV: This has to be done by the authorized person of the intermediary who needs to be on a video call with the customer. During the process, the rep may ask random questions and also the customer shall be asked to show up the different documents as and when asked for.

- Aadhaar eSign: This is a government of India prescribed method to sign the document using Aadhaar and is as good as a physical sign of the person concerned and is done using the password.

For verification of different IDs of an individual or customer, there are used different methods like for aadhaar verification is done through the UIDAI. PAN is verified through the tax department, bank account through the process wherein Rs. 1 is deposited in the investor's account. Post all the details are verified user can take a print out, put signatures of the document, scan them and send them to intermediaries.

Alternatively they can put a cropped signature on the form and submit it for e-signature.

GoodReturns.in