Computer Age Management Services (CAMS) Limited has launched eKYC using OTP-based Aadhaar verification to on-board new mutual fund investors.
In compliance with the regulation, CAMS has developed the solution that will enable new investors to complete the KYC process digitally with OTP-based Aadhaar Authentication without any hassles, CAMS said in a release.
The new OTP-based Aadhaar verification is a simple method as compared to the erstwhile Aadhaar XML based verification.
CAMS and CAMS Investor Services Pvt Ltd are among the 8 securities market entities which were granted approval to undertake Aadhaar Authentication. In the Mutual Funds industry, KYC is mandatory for all investors to invest in Mutual Funds.
Aadhaar Authentication is a process by which the Aadhaar number and the demographic / biometric information of investors is submitted to UIDAI database for verification.
The eKYC through Aadhaar authentication service allows investors to make investments in desired mutual funds with minimal efforts and without any limits or restrictions, anywhere, anytime.
CAMS Whole Time Director and Chief Executive Officer 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 eKYC.”
“This will definitely make onboarding of new investors a lot more efficient and most importantly simpler and less time-consuming. We have always aimed at improving our services at every step to make convenience and ease be central to the Mutual fund investing,” he added.
The integration of the new eKYC solution in digital portals and mobile apps of Mutual fund houses and CAMS digital properties has already commenced and will be extended to online distributors as well.