UIDAI has dealt a major blow to online mutual fund distributors who heavily rely on Aadhaar based eKYC to onboard new customers. The UIDAI has asked the KRAs (KYC Registration Agencies) to stop the Aadhaar based authentication of eKYC with immediate effect. As a matter of fact, the UIDAI has asked all the KRAs to send a report stating that they have stopped using Aadhaar authentication process for eKYC.
This development is due to the recent ruling by the Supreme Court on Aadhaar card. This has created a lot of confusion among the R&T agents, distributors, and AMCs about using the Aadhaar eKYC process to onboard new investors.
What is eKYC Process?
Usually, in an Aadhaar based eKYC process, any new investor needed to fill in the details of their Aadhaar card and PAN card on the site of an online distributor. Then they would receive an OTP (One Time Password) on the mobile number registered with their Aadhaar card. This OTP would fetch the KYC details from Aaadhar UIDAI systems. Upon submitting an investor would complete their eKYC process and would generate an eKYC number.
However, with this ruling by UIDAI, online distributors are likely to be affected the most as they heavily rely upon Aadhaar eKYC process for verifying new investors. But here is where we would like to tell you that Orowealth will be completely unaffected by this development. Orowealth has always been implementing the original KYC process to onboard new investors.
It’s always been easy to signup with Orowealth
This new ruling by UIDAI has only strengthened our beliefs in sticking to basics and providing new investors with hassle-free KYC experience. Orowealth has a fully functional setup for online KYC process and can firmly say that it is the way forward in the mutual fund industry.
Here’s how you can complete your KYC process with Orowealth: