Mutual Funds ekyc-aadhaar

eKYC via Aadhaar OTP for mutual funds

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eKYC via Aadhaar OTP enables Indian residents to complete mutual fund KYC instantly using their Aadhaar number and a one-time password sent to their registered mobile. The mechanism, enabled under UIDAI’s eKYC framework with SEBI operational guidance, has been a major enabler of streamlined retail onboarding to mutual funds.

Framework

Operational mechanics

  1. Investor provides Aadhaar number on AMC / direct-plan platform.
  2. UIDAI sends OTP to Aadhaar-registered mobile.
  3. Investor enters OTP.
  4. UIDAI provides KYC details (name, address, photograph, DOB) electronically.
  5. AMC’s KYC record completed.

Total time

  • Typically under 2 minutes.
  • Substantially faster than paper-based KYC or video KYC.

Limits

Per-investor limit

  • Aadhaar OTP-based eKYC has a per-investor investment ceiling.
  • Typically Rs 50,000 per AMC per FY.
  • For higher amounts: video KYC or in-person KYC required.

Why the limit

  • Anti-money-laundering safeguards.
  • OTP-based authentication is convenient but less rigorous than biometric.
  • Higher-value onboarding requires additional verification.
MethodSpeedLimitVerification level
eKYC Aadhaar OTP2 minutesRs 50,000 / AMC / FYMid
eKYC Aadhaar Biometric5 minutesHigherHigh
Video KYC10-15 minutesNo specific limitHigh
In-person KYCHours / daysNo specific limitHigh
CKYC referenceInstant (if existing record)Per existing KYC tierPer existing

Adoption

Role in industry growth

  • Enabled mass-scale retail SIP onboarding.
  • Particularly impactful for B30 cities where physical KYC was harder.
  • Key enabler of post-2020 retail expansion.

See also

External references

References

  1. AMFI public records and industry data.
  2. SEBI (Mutual Funds) Regulations 1996.
  3. Indian financial press coverage.

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