In today's world, several people are interested in mutual funds; however, many are not aware of the different terms in relation to it. These terms are:
- CAMS- CAMS or Computer Age Management Services that are used to transfer mutual funds and are the most trusted agency across India.
- KYC - KYC or Know your customer is the process through which the customer's identity is verified.
- KRA - KRA or KYC Registration Agency contains the KYC records of all the people part of the financial business market.
In India, there are a number of KRAs that require and keep KYC documents on behalf of investors. CAMS KRA, CAMS regular and eKYC process, CAMS FATCA declaration, and other documents required to complete the process will be discussed in this article.
Did you know?
CAMS was originally a startup in the area of Software development and computer education and came into existence in 1988.
All About CAMS KRA
What is KRA in a mutual fund?
Under the Securities and Exchange Board of India (SEBI) Regulations, 2011, the KYC Registration Agency (KRA) is registered with the market regulator SEBI. A KRA is responsible for collecting and maintaining investor KYC records on behalf of SEBI-registered financial market players. KRA aids in providing a centralised system for market players to obtain investor KYC records without having to go through the complicated process of completing documentation every time an investor transacts in any market-related instrument.
The five KYC Registration agencies in India include:
- CAMS KRA,
- National Stock Exchange of India Ltd (NSE) KRA,
- National Securities Depository Limited (NSDL) KRA,
- Karvy KRA, and
- Central Depository Services (CSDL) KRS.
CAMS KRA is an agency that gives customers services that include mutual funds and SEBI-accredited stock financiers. Since 1993, it has been registered with SEBI as a registrar for all mutual fund companies. Currently, it serves roughly 60% of the financial domain. CISPL, or "CAMS Investor Services Private Limited," manages the CAMS-entire KRA's KRA operation. The SEBI granted it a license in June 2012, and KRA's services began in July 2012.
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CAMS KRA - Features
CISPIL employs some of the most cutting-edge technology in data gathering, processing, and management to provide smooth and efficient services to its clients. The following are some of the most notable aspects of CAMS KRA:
- Data coverage takes place on a real-time basis through PAN India network of branches
- Supports both common KYC process and e-KYC process
- Image-based Technology
Process of KYC
Step 1: Individual investors who want to complete the KYC procedure through CAMS KRA can send their completed Central KYC or CKYC application forms for individuals to their registered financial advisers or contact their nearest CAMS customer service Centre (CSC).
Step 2: The following documents are also required to be submitted for CAMS KRA:
- A copy of PAN Card
- Passport Size Colored Photograph
- Address Proof such as (Passport, Aadhar, Bank Account Statement, Electricity bill)
Step 3: Along with these, the original also needs to be shown for verification purposes.
Step 4: The CAMS KYC Individual form is simple to complete and requires basic information. The first four points ask you to fill out the form with basic information about yourself.
Step 5: The next step is to complete the Foreign Account Tax Compliance Act of the United States of America (FATCA) status declaration, which improves tax compliance and prevents money laundering through the financial system.
If the KYC applicant is a minor or a Non-Resident Indian, details regarding the linked individual must be filled out in the sixth point (NRI).
Step 6: They must supply the name and contact information of the person handling the account on their behalf. Select "Guardian of Minor" for a minor and "Authorised Representative" for a non-resident alien.
You must give the associated person's KYC information, and if the person's KYC has not been completed, you must fill out the Annexure B1 form after the file.
Process of Verification
After successfully submitting the application form and the required papers, you will receive an email and SMS in the following 24 to 48 hours regarding document verification and KYC compliance. You can also monitor the status of your application online by entering your PAN/Aadhar card number in the website's track application area.
e-KYC Method
It is an easy, completely online, and paperless procedure. The process is as follows:
- Visit and log in to the official website (among the five KRA).
- Basic details will be required to enter there such as Date of Birth, Mobile Number, Email ID, PAN Card, Mutual Fund name, tax status, etc. After giving these details, you can go through to the next step.
- In the next step, the CMS System will check the KYC status. Only after your PAN has passed KYC may you make new purchases. Otherwise, you'll be directed to finish your KYC process by providing details about your Aadhar Card.
- An OTP will be received on the registered mobile number with the Aadhar, which will help in the authentication.
- Along with this, the option for declaration and consent will also be there, which has to be ticked.
- The details will be authenticated by the CMS system with the database of Aadhar of Unique Identification Authority of India (UIDAI).
- Following successful authentication, the applicant's information will be displayed on the page. The applicant will be needed to tick the checkbox to complete the declaration and consent process, which must verify all the information contained in the KYC application. Again, one OTP from your registered mobile number will be required when employing the digital signature for security purposes.
- After completing the process, the applicant can invest in mutual funds.
Keep in mind that if the applicant's KYC form is in the process or has been rejected in the past, they are ineligible for the e-KYC process.
FATCA
FATCA stands for Foreign Account Tax Compliance Act. It is a deal between India and the United States to improve tax compliance in both countries. Under the terms of the agreement, Indian financial institutions must provide vital information to Indian tax authorities on-demand based on specific financial transactions and subsequently send that information to US agencies.
FATCA went into effect on August 31, 2015. All Indian investors (both existing and new) who plan to participate in mutual funds or FDs must fill out the FATCA/CRS self-certification form to comply with the laws.
Process of Filing FATCA
The process of filing FATCA is as follows:
1. The FATCA/CRS form is available with all mutual fund businesses and registered distributors. You can obtain one of the forms and complete it with all the necessary information.
2. The filled form can be submitted along with the photocopies of the relevant documents to the mutual fund's corporation or any CAMS/ KARVY representative.
3. The online FATCA Cams form can also be filed online through the official website of R&TA (https://www.cdslindia.com/RTA/rta-list.aspx).
OTP will be required to be generated for verification purposes through the PAN Card, which will be received on the registered mobile number or email ID.
4. The details and documents required to be given along with this form include -
- A tax residency status of the Applicant
- Birth Certificate
- Income Certificate
- Proof of occupation
- Proof of Identity such as Passport, Voter ID Card, Aadhar Card. (PAN Card will not be accepted as proof of identity).
The process is mandatory for both NRI as well as Indian residents.
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Conclusion
It is important for people to have the right knowledge about CAMS KRA KYC as well as CAMS FATCA if they are interested in mutual funds. The article gives you all the relevant information regarding cams, the process of KYC, e-KYC, and FATCA check and procedures to obtain FATCA.
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