November 2021

Know Your Customer (KYC) for mutual funds works the same way as that for other financial services. It’s a customer identification process carried out by all financial institutions including banks and asset management companies.

KYC Registration Agencies (KRAs), entities registered with the Securities and Exchange Board of India (SEBI), maintain KYC records. The Reserve Bank of India set up the KYC guidelines in 2002. Along with these guidelines, the SEBI master circular on Anti Money Laundering Standards emphasises the requirement for the customer identification procedure.

Why is KYC Mandatory for Mutual Funds?

The Prevention of Money Laundering Act, 2002 requires you to complete the process of KYC before investing in mutual funds. It helps establish your authenticity as an investor by making sure you provide your real name and other necessary details. The process also ensures that you have constructive investment purposes and don’t come with a history of defaults. This helps prevent risks of fraud and money laundering in future.

Who Needs KYC Compliance for Mutual Funds?

Whether you want to invest in a mutual fund through SIP (systematic investment plan) or with a lump sum, you must complete the KYC procedure. You only need to go through a one-time verification for transactions across all funds. KYC compliance for mutual funds applies for:

• Non-individual(s) or individual(s)
• One who has legally become an investor, for instance, after the death of the original investor
• Constituted PoA (Power of Attorney) holder(s)
• A guardian who wants to invest on behalf of a minor

How to Get KYC Compliance?

You can check whether you have already gone through the KYC compliance process by entering your PAN details on the particular mutual fund website or the KRA website. Then you can also see the last modification date and whether you need to provide any missing details.

If you have completed the KYC procedure at an AMC or KRA branch or via a SEBI-registered intermediary like a mutual fund, DP or broker, you need not go through the process again.

If you are not KYC compliant, you can go through the process online or offline. For the online (video) method, you need to upload scanned images of your signature and proofs of address and identity with an original photograph. To carry out the process physically, you (including all joint holders if any) can download the KYC form online from the mutual fund website. Then each applicant must fill it up and submit it with proper identity and address proofs. When you submit the documents, you need to appear in person for their physical verification.

After the procedure, use the SIP compounding calculator to check the estimated returns of your chosen investment scheme.

Now that you see it’s so easy to carry out KYC for mutual funds, complete the procedure soon so you can start making investments right away. Besides, always make sure that the information in your KYC records is updated. To modify any information, you need to submit a KYC details change form with the required documents like a current address proof if your residential address has changed.

To adapt to modern time requirements, businesses of all kinds, including e-commerce businesses, must stay up to date with the demands and needs of their clients. This includes providing them with the services and products they are looking for.

But it’s not only about the quality of products and services you sell; it’s also about how easy and convenient the whole purchase process is, starting from the shopping journey and payment to the delivery and after-sales services.

Customers who shop online look for convenient payment options that appeal to their preferences. Considering that, businesses must offer several payment options to cater to and target as many customers as they can.

For now, cash is here to stay. Some may still go for cash to make payments. There are many reasons for that; old people find it easier to handle cash and think it is safer than other options. Other people use cash to control their expenditures since they tend to turn into spendthrifts when using credit cards and other digital payment methods.

Still, those don’t represent the majority; most people don’t like to carry cash anymore. For that reason, businesses must be prepared to serve people no matter what their preferences are.

In this article, we will list the most popular payment methods every business must encompass not only to be at the top of clients’ list but also to facilitate the relationship between them and their different suppliers.

Credit and Debit Cards

Credit and debit cards are some of the most popular payment methods around the world. They can be used for both in-store and online purchases.

 Many prefer paying using their card to benefit from their banks’ reward programs. With every payment they make they’ll earn points that can be redeemed for things like traveling miles, VIP lounge access, and other tempting stuff.

They are popular for their convenience. It is rare to find a business that doesn’t allow paying with a debit or credit card and the few that don’t lose a lot of profit. It takes few clicks, and everything is done.

Direct Deposits

With direct deposits, individuals can transfer money directly to the business’ account. Through direct debit mandates, the customer would be able to send a request to the bank to authorize the payment.

Direct deposits are actually one of the safest paying methods, eliminating the risk of theft. This method is more commonly used with recurring expenses, e.g., monthly service subscriptions fees.

It may be a traditional way compared to the newly invented methods, but it wouldn’t lose its value any time soon. In fact, it is very essential for B2B kind of payments.

Cryptocurrencies

It may seem a bit insane for some at the moment, but cryptocurrencies are growing in popularity and are expected to be one of the mainstream payment options in the future. Governments around the world are heading towards establishing laws that will regulate the use of cryptocurrencies.

Though they are surrounded with uncertainty due to the constant change in value and government unstable views towards them, cryptocurrencies are a worthy online payment option to consider.

 Electronic Wallets

Electronic wallets or e-wallets are the new go-to payment option for businesses and customers. The concept is simple, the customer would download an app, where he will store all the financial information he needs to make a payment. It can be used to pay online or in-store.

Not only customers can benefit from e-wallets these days. This convenient option can function as a payment method in B2B transactions. It would help business owners to enhance their relationships with suppliers, track expenses, and settle payments easily.