Computer Age Management Services launches Aadhaar-based eKYC for opening MF account online

NEW DELHI: Mutual fund transfer agency Computer Age Management Services (CAMS) has launched Aadhaar-based eKYC for opening an MF account online.

Simplifying the electronic verification process through Aadhaar, market regulator Sebi last month said mutual fund houses and market intermediaries can verify the credentials of their clients with the Unique Identification Authority of India ( UIDAI).

"Aligned to Sebi's vision, CAMS has launched Aadhaar-based eKYC using OTP authentication to make MF account opening and transactions a paperless and presence less process," CAMS said in a statement.

In a circular, the Securities and Exchange Board of India (Sebi) had said mutual funds can "perform verification of the client with UIDAI through One Time password received on client's mobile number or on e-mail address registered with UIDAI provided."

Further, it had said that the amount invested by the client should not exceed Rs 50,000 per financial year per mutual fund.

"Mutual fund penetration with citizens especially in Tier 2 and 3 towns can be accelerated with Aadhaar based eKYC. Younger generation who prefer digital experience can start investing with a complete digital solution for instant account opening," CAMS President and CEO N K Prasad said.

Sebi had also said that market intermediaries can also perform verification of the client with UIDAI through biometric authentication.