How-to KYC Aadhaar OTP eKYC

How to complete mutual fund KYC online using Aadhaar OTP

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Completing mutual fund KYC online using Aadhaar OTP is the fastest onboarding path available to Indian retail investors. The Aadhaar OTP-based eKYC route, operationalised through UIDAI’s eKYC framework with SEBI / AMFI guidance, takes under five minutes end-to-end and requires no physical documents, branch visits, or video calls.

This guide covers the complete procedure across the major direct-plan platforms and AMC portals, the prerequisites, the per-investor investment ceiling that applies to this onboarding path, and the common errors investors face.

Conflict-of-interest disclosure. This guide is published by WebNotes Editorial Team for informational purposes. WebNotes has no commercial relationship with any mutual fund AMC, distribution platform, or KYC service provider. No affiliate commission is earned from successful KYC completion.

Step-by-step procedure

The numbered procedure in the schema infobox above is the canonical flow. Here are the steps expanded with platform-specific notes and error handling.

1. Verify Aadhaar mobile linkage

Before you start eKYC, verify your Aadhaar mobile number. Go to the UIDAI portal (uidai.gov.in) → Verify Mobile/Email. If your mobile is not linked, the eKYC OTP will not be delivered. To update the linked mobile, visit an Aadhaar enrollment centre with a fresh mobile number and the Rs 50 update fee.

2. Choose your direct-plan platform or AMC

The eKYC mechanic is identical across platforms because they all integrate with the same central UIDAI eKYC service via KRA infrastructure. Popular options include:

3. Initiate eKYC on the platform

Tap Start KYC, Begin Investing, or the platform’s equivalent CTA. Choose Aadhaar OTP eKYC if offered alongside other methods such as Video KYC or CKYC reference.

4. Enter PAN and Aadhaar

Provide your PAN card number (10-character alphanumeric) and your 12-digit Aadhaar number. The platform’s backend submits these to the UIDAI eKYC service via SEBI-approved KRA infrastructure.

UIDAI requires explicit consent before sharing your data. The consent dialogue covers:

  • Data fields shared: name, gender, date of birth, address, photograph.
  • Purpose: SEBI-regulated mutual fund KYC.
  • Validity: typically 30 days.

Read and accept.

6. Enter the OTP

UIDAI sends a 6-digit OTP to your Aadhaar-registered mobile. Enter it in the platform’s OTP field within 10 minutes. If the OTP does not arrive, common causes are stale mobile linkage, network delay, or UIDAI service degradation. Retry after one minute.

7. Confirm details

The platform displays your name, address, photograph, and date of birth fetched from UIDAI. Verify accuracy. If your Aadhaar address is outdated (e.g., parental address from college era), update Aadhaar before continuing or use Video KYC for a more flexible address-verification path.

8. Complete the FATCA declaration

Per FATCA-CRS in onboarding , every Indian MF investor must declare tax residency. For typical resident Indians, choose Indian-tax-resident only and confirm no US-tax-residency status. NRIs must additionally declare their country of residence.

Provide bank account number and IFSC. The platform initiates a Re 1 penny-drop credit to verify ownership. Allow 10 to 30 minutes for the credit to appear in your account.

10. KYC complete

The platform marks your KYC as Registered within seconds of UIDAI verification. You can now subscribe to mutual fund schemes up to the Aadhaar OTP eKYC ceiling.

Per-investor investment ceiling

Aadhaar OTP eKYC has a structural investment ceiling: Rs 50,000 per AMC per financial year. This is an anti-money-laundering safeguard. For higher amounts:

  • Complete Video KYC (no specific cap, more rigorous verification).
  • Use existing CKYC reference number (higher trust tier).
  • Visit AMC branch for in-person KYC.

For most retail SIP investors with under Rs 4,000 monthly SIP per AMC, the Rs 50,000 limit is not binding.

See also

External references

References

  1. SEBI Master Circular on KYC norms, SEBI/HO/MIRSD/MIRSD_RTAMB/P/CIR/2023/171, October 12, 2023.
  2. SEBI (Mutual Funds) Regulations 1996.
  3. UIDAI Aadhaar Authentication and e-KYC API specifications.
  4. AMFI Best Practice Guidelines on KYC.
  5. Prevention of Money Laundering Act 2002 and rules thereunder.

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The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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WebNotes is independent. No relationship with any broker, registrar or bank named in this article.