Most of the people who are working have heard about the mutual funds, and further may have good knowledge about all these terms. But if you’re completely new to this field and all these words don’t make sense to you, don’t worry, we’ve got you covered. Let us first get to know all the full forms of these buzzwords and a brief introduction, so that it will be easier for us to know them better in detail as we go forward with the article. So firstly, CAMS is the acronym for “Computer Age Management Services.” These services are widely popular for the transfer of mutual funds, and they’re the most trusted agency in the domain all across India. The KRA is the acronym for “KYC Registration Agency,” and it has the database of all the KYC records of the people (basically investors) who are the participants of the financial business market. It is registered under the SEBI, which is the “Securities and Exchange Board of India.” SEBI is India’s market manager. In simple terms, KRA is a concentrated system that helps to get access to the KYC records of various shareholders to the financial market people, so that they don’t have to go through the traditional process of documenting for each time a capitalist makes any transaction. KYC – most of the people are familiar with this term. It stands for “Know Your Customer,” and it is the procedure that confirms and verifies the identity of a customer. Also, you must get your KYC completed if you are going to buy any services or products from any monetary organization. Across all India, there are only 5 KRAs available. One of them is CAMS KRA. The other four are the KARVY, NSDL (NDML), CSDL (CVL), and the NSE – KRAs.
What Is CAMS: KRA, KYC, FATCA Status
A brief introduction to the CAMS KRA: This KYC registration agency provides customers with the services that include all types of mutual funds and SEBI amenable stock financier etc. It is registered with SEBI since 1993 as a registrar for all the companies that deal in mutual funds. And now it is serving approximately 60% of the financial domain. All the KRA work of the CAMS-KRA is in the hands of CISPL, which is the “CAMS Investor Services Private Limited,” It got its license in the June of 2012 by the SEBI and the services of KRA were started in the July of 2012. Also Read: 10 Best Mutual Fund Apps to Invest Online in India (2020)
Key features of the CAMS- KRA:
As the tech industry is evolving, new tools and technologies like image-based processing are being used for the collection of data, processing of data and its management, so that the clients experience very efficient and smooth services. The coverage of data is available in real-time by using the branches of Pan India available across the country. It also supports e-KYC along with the traditional KYC procedures.
Now let us have a look at the procedures of completing the KYC which are made available by CAMS-KRA:
The traditional process of getting your KYC done:
First of all, to fill your KYC form, you need to have all the necessary documents that are required at the time of application as well as verification. These documents are:
Xerox copy of your PAN card A document as proof of your address. For this, the documents supported are Aadhar card, Passport, statement of your bank account, or the electricity bill. Recent colored passport size photo.
If you’re an individual capitalist who needs to complete his/her KYC through this particular CAMS-KRA, then you can either submit the filled application form through any registered monetary advisors or you can just simply visit the CSC which is the ‘CAMS Customer Service Center’ and can submit your form there. CAMS-KYC form for an individual is very simple and can be filled using only the basic information. There will be sections that are required to fill using authentic information only.
In the first section, you have to fill out your details. In the next section, you will have to enter the declaration of your FATCA status. It is required to prevent money laundering from the system and for huge tax acquiescence. The next section requires you to fill if the applicant is NRI or a minor and the details of the person who will be responsible for operating the applicants’ account on his/her behalf.
In the case of a minor, you should select the ‘Guardian of minor’ and, in the case of NRI’ Authorized representative’ should be selected. Also, now you have to provide the details of the KYC of the specified person, and in case the persons KYC is not done, you have to fill out another form, which is the annexure B1, usually present at the end of this application form.
Verification Process:
After successful submission of the application form and all the relevant required documents, an email and SMS will be received regarding the verification for the documents and in compliance with the KYC in the next 24 to 48 hours. Also, you can check the status of your application online by entering the PAN card number/Aadhar card number in the track application section of the website.
The e-KYC method
E-KYC is a comparatively simpler process and is completely paperless. You can start your investment in mutual funds online after completing your e-KYC. For the first time capitalists, the process of completing the is as follows:
Firstly, go to the CMS official website and login with your details. Now you will have to enter all your details like the email address, phone number, date of birth, PAN card, mutual fund name, tax status, etc. Fill all the details correctly and then proceed for the next step. Now the CMS system will automatically check the status of KYC for the applicant. You can go for new purchases, only if your PAN has complied with KYC. Otherwise, you will be directed to complete your KYC process by giving your Aadhar Card details. Now you will have to authenticate your Aadhaar. You will get an OTP on your mobile number, which is registered with your Aadhar card. Enter that OTP and tick on the option that is required to be filled for your declaration and consent. CAMS system will automatically authenticate the details with the Aadhaar database of UIDAI. After successful authentication, the applicant’s details will be available on the screen, and then the applicant is compulsorily required to tick on the checkbox for completing the declaration and consent process, which is mandatory for verification of all the details present in the KYC application. And again, one OTP will be required from your registered mobile number for security using the digital signature.
Once this process is completed, the applicant has completed its e-KYC and is now able to invest in mutual funds. One of the key points to note is if the applicant’s KYC form is under process, or in any earlier case, it has been rejected, they are not eligible for the process of e-KYC. Also Read: How To Update KYC EPF UAN online?
Now let’s understand what CAMS FATCA Status is in detail?
First, we’ll start with the full form. FATCA is the acronym for the “Foreign Account Tax Compliance Act.” This is an agreement which is signed between the United States and India, to get higher tax compliances in the middle of both the countries. The FATCA came into being and was implemented from the 31st of August 2015. And after its effect, all the investors of India, no matter existing ones or new ones, were directly affected. Now, if they plan to invest either in a fixed deposit or any mutual fund, they will have to complete the Self-Certification form of FATCA/CRS to abide by the rules and regulations. As per the agreement of FATCA, the monetary institutions of India need to provide some of the key information to the tax authorities of India whenever they demand, on specific transactions, and then they also need to forward this information to the agencies of United States as well.
How to file your FATCA?
All the mutual fund corporations, as well as the registered distributors, have the form of FATCA/CRS with them. You can get one of the forms and fill it with all the details that are required. Then, you can submit it to the mutual funds’ corps or any of the CAMS/ KARVY agents, with attaching xerox copies of all the required documents. If you wish to fill this form online, it can be done through the official website of R&TA. You will just need your PAN card to generate OTP through your email or mobile number for verification purposes. The details required to fill this form comprise of India’s tax residency status of the applicant. The documents whose photocopies are required include the birth certificate, proof of your occupation, and also an income certificate. You also need to submit proof of Identity, which cannot be your PAN card, it can be either your voter identification card, Passport, or your Aadhar card. This process is compulsory, no matter if you are an Indian capitalist or an NRI. Also Read: 12 Best Stock Market Trading Apps In India So, here we conclude all the detailed information that you need to know about the CAMS KRA and KYC, also the FATCA agreement as well.
