Standardized Digital KYC Process beats Lockdown Woes of Investors

15 Jun 2020

The finance ministry has allowed nine entities to undertake Aadhaar-based eKYC.

For quite a while, stockbrokers and mutual fund platforms have been utilizing digital KYC (know your customer). Be that as it may, no two associations followed a similar methodology. Some mutual fund platforms, for instance, permitted clients to record a video to replace in-person verification (IPV), while most stockbrokers sent an agent to the customer's home or office to complete IPV.

In the wake of the lockdown due to covid-19, the administration and capital markets regulator Securities and Exchange Board of India (SEBI) have now moved to ease KYC standards and standardize the procedure.

Aadhaar-based KYC

The ministry of finance issued gazetted warning on 22 April to make the KYC procedure altogether digital for exchanges through certain substances.

As indicated by the notice, nine substances would now be able to attempt Aadhaar validation or Aadhaar-based e-KYC. The institutions include 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.

The notice said that the central government permitted them on being fulfilled that the nine elements consent to principles of protection and security under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

Online KYC

After the Finance Ministry’s notice, SEBI thought of an explanation on the KYC procedure and the utilization of innovation for it. The regulator permitted numerous online administrations that enrolled delegates can use for KYC.

Here are mentioned few of them:

Aadhaar eSign

This is a government recommended technique for validating a document utilizing Aadhaar. Lawfully, it is viewed as proportionate to that of wet signature (physical mark utilizing a pen). It is finished utilizing a one-time password.

Digilocker

Prior, an intermediary was required to coordinate the digital copies of archives with the firsts. Sebi has now permitted confirmation of records utilizing the central government's Digilocker office. Clients can store advanced duplicates of driving licence, Permanent Account Number (PAN), Aadhaar, vehicle enrolment, mark sheets, ration card and different reports in a Digilocker. Reports put away in Digilocker are viewed as proportional to the original ones.

For all these mutual fund firms, Accura Scan already have these features covered under its capabilities including KYC Onboarding and liveness check with face recognition. Banks can use a biometric facial recognition will enable you to carry out entire ID verification. Now, we know your next concern. Was the person himself present while doing the transaction? or submitting KYC documents? or while opening the account remotely? Here is where Liveness check feature of Accura Scan will be a perfect fit.

Accura Scan, a pioneer in scanning technology is a perfect solution for the onboarding and KYC of the new customers. At Accura Technolabs, it is our mission to replace the manual KYC onboarding. You can check out more information about us here https://accurascan.com/download