The process of investing does not start with the first trade of investors. It begins with various processes which allow them to enter the markets. One such process is the KYC.
KYC is known as Know Your Customer. It refers to the process of verifying an individual’s identity through the collection of user data and documents like the PAN, Aadhaar, etc.
The concepts of KYC and KRA are not similar but interrelated. KYC Registration Agency (KRA) refers to a central agency that stores and maintains KYC records of customers in the financial and securities market.
Presently, there are five SEBI-registered KRAs. CAMS KRA, KRAVY KRA and CVL KRA are a few of them.
Here is a step-by-step breakdown of the CAMS KRA.
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What is CAMS KRA?
Computer Age Management Services (CAMS) offers a KYC process. They streamline the procedure and maintain a set of user data in the form of KYCs that can be accessed by intermediaries like mutual funds. Their strong infrastructure and experience in handling consumer data make them a reliable collaborator for both investors and financial institutions.
It is a SEBI-registered RTA (Registrar & Transfer Agency) that provides nationwide KYC services for all mutual funds, as well as stock and commodity dealers.
The KRA and KYC services were laid out with some very important goals in consideration. These goals determine their course of action.
Functions of CAMS KRA
The primary goals of the CAMS KYC that determine its role and objectives are listed below.
Centralisation of data
The KRA must maintain and secure different KYC papers supplied by selected SEBI registered intermediaries and investors. The data must be stored such that it is conveniently available at all times.
Digital KYC
CAMS KRA enables a quick online KYC procedure that does not require any physical evidence or physical submission. The tool also enables investors to verify the progress of their KYC applications at any time.
Update
Investors may easily modify their KYC online using the CAMS KRA platform. The corrected data is automatically amended and shared with KRA-connected intermediaries, speeding up the process.
Interconnectivity
The CAMS KRA system is integrated with other KRAs to provide seamless connectivity of operations.
CAMS online KYC process
Every investor who wants to engage in the capital market must complete the KYC process and verify with the KRA. Here is a step-by-step guide on how to get KYC registered online with the CAMS KRA website.
Step 1- Download application
Download the required KYC paperwork through the CAMS KRA website. On the other hand, mutual funds and brokers can furnish the KRA forms as well.
Step 2- Submission of form
The form must be submitted after addressing all user detail questions online or offline. The form can be submitted to the mutual fund house or RTA service centre, given that the customer is submitting the forms offline.
Step 3- Supporting documents
Along with the form, a customer must furnish appropriate supporting documents that substantiate the facts stated in the form. Supporting documents refer to additional paperwork like PAN.
Step 4- Verification
When the KYC form and documentation are submitted, CAMS KRA validates all of the information against the documents given. The licensed intermediary, fund house, or RTA conducts the verification procedure, including in-person verification.
Step 5- Acknowledgement
The investor gets a confirmation once CAMS KRA verifies their KYC data. Investors can begin investing in mutual funds or linked assets that require KYC compliance with CAMS KRA records.
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Types of CAMS KRA
KYC registration with CAMS KRA requires the selection of appropriate forms. Various types of forms are available.
Individual KYC forms help individual investors who want to conduct their KYC verification under their names. Non-individual KYC forms are for businesses, trusts and other organisations. These KYCs are registered under the company name and not its owners.
The Modification form is for customers who want to amend their KYC information. KRA KYC change form is identical to the modification form. However, it allows clients to update their KYC information in the KRA database.
Conclusion
KYC KRA is a mandatory legal prerequisite for all investors before entering capital markets. CAMS KRA has an array of service facilities throughout the country that provide a one-stop solution for mutual fund KYC registration. It verifies that the investor’s information is legitimate. Verification restricts fraudulent activity in the investment business, which benefits the whole investing ecosystem and the parties concerned.
CAMS KRA systems provide simple and rapid connection, allowing records to be registered throughout all service centres across the nation. It enforces data security standards to prevent breaches and ensure the safety of personal user information.
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FAQs
- What is KRA in mutual funds?
KYC Registration Agency (KRA) is a central body that holds and maintains KYC records for consumers in the financial and securities markets. At present, SEBI has five registered KRAs- CAMS KRA, KRAVY KRA, and CVL KRA are a few examples of the KRAs.
- How can I check my KRA details?
A registered user can check all relevant details online through the website of the KRA in question. In the case of CAMS KRA, a user can check his details and verify the status of any request; such as modification through the portal with the help of documents like PAN.
- What does CAMS do?
Computer Age Management Services (CAMS) provides KYC registration. They accelerate the process and keep a record of user information in the form of KYCs that can be obtained by intermediaries such as mutual funds. Their robust infrastructure and experience handling consumer data make them a trustworthy partner for both investors and financial institutions.
- What is the difference between KRA and KYC?
KYC, often known as ‘Know Your Customer’, is the process of validating an individual’s identification by collecting user data and documentation.
The ideas of KYC and KRA are not identical, yet they are linked. KYC Registration agency is a central organisation that holds and maintains KYC records for consumers in the financial and securities markets.
- What is the fee charged for CAMS KRA for online KYC?
Currently, CAMS KRA does not charge any fees for online KYC. CAMS KRA systems provide simple and rapid connection, allowing records to be registered throughout all service centres across the nation. It enforces data security standards to prevent breaches and ensure the safety of personal user information.
