What is CAMS: KRA, KYC, FATCA Status



  • There are various KRAs in INdia to mandate and maintain KYC records on behalf of investors. In this post, we will discuss on CAMS KRA, CAMS regular and eKYC process, CAMS FATCA declaration and various documents required to complete the process.

    Introduction to KRA
    KRA is known as KYC Registration Agency which is registered with the market regulator SEBI, under the Securities and Exchange Board of India (KRA) Regulations, 2011. A KRA is mandated to collect and maintain KYC records of investors on behalf of financial market participants registered with SEBI. KRA helps to provide a centralized system to market participants to access the KYC records of investors without going through the hardship of going through the documentation process every time an investor transacts in any market-related instruments.

    There are five KYC Registration Agency (KRA) operating in India including CAMS KRA, Karvy KRA, NSE KRA, NSDL KRA (NDML) and CSDL KRS (CVL).

    CAMS KRA
    Computer Age Management System (CAMS) is a registered entity with the SEBI was setup in 1993 as a registrar to Mutual Fund companies and now serves almost close to 60 percent of the industry. The KRA division of the company is managed by its subsidiary CAMS Investor Services Pvt. Ltd. (CISPL). It was accorded with the license by SEBI in June 2012 and started its KRA services in the early July 2012.

    CISPIL uses some of the latest available technologies in data collection, processing and management to ensure smooth and efficient services to its clients. Salient features of CAMS KRA are:

    • Image based Technology
    • Real Time data coverage available through vast Pan India network of branches
    • Supports both e-KYC process and common KYC process

    CAMS KYC Process
    Individual investors looking forward to completing the KYC process through CAMS KRA have the option to submit the filled in CKYC Application Forms for Individual to either to their registered financial advisors or by visiting their nearest CAMS customer service centre (CSC).

    Supporting Documents required while submitting the filled in KYC form

    • A recent passport size colour photo
    • PAN card copy
    • Proof of Address ( Aadhar, Passport, Electricity Bill, Bank account statement)
      *while submitting the documents to the CAMS CSC carry your original document for verification purpose.

    Filling the CAMS CKYC Individual form is simple and requires basic information to be filled. In the first four points requires basic details regarding yourself to be filled out in the form. In the fifth point, you will need to fill up the FATCA status declaration which is done for greater tax compliance and prevent money laundering through the system. In the sixth point, details about the related person need to be filled out if the KYC applicant is a minor or a Non-Resident Indian (NRI). He/she has to provide details of the person who will be operating the account on their behalf. For minor, one needs to select the "Guardian of Minor" and for NRI, one should select "Authorized Representative". You have to provide the KYC details of the related person and if not KYC compiled then fill out the Annexure B1 form present at the end of the file.

    Verification Process
    After submitting the filled out form with all the relevant documents, the applicant will receive the email and SMS regarding the verification of documents and compliance to KYC within 24-48 hours. The status can be checked online here by entering the PAN or Aadhar number.

    CAMS eKYC Process
    e KYC is Aadhar based online paperless KYC process to start the investing process in mutual funds through online mode. First-time investors can complete CAMS e KYC process three simple steps.

    • Login to CAMS online website
    • Enter your email id, mutual fund name, PAN, Date of Birth, Mode of holding, Tax status, and phone number and proceed by clicking Next.
    • On furnishing the details, the CAMS system will check KYC status of the individual. If PAN is KYC compiled, then you can proceed with the new purchase and if not, proceed to complete the e KYC process by providing the Aadhaar details.
    • On furnishing the Aadhaar details, OTP will be sent in mobile no. registered in the Aadhaar database for the authentication process
    • You will be required to fulfil the Consent and Declaration by selecting the option
    • CAMS will then authenticate the details with UIDAI database
    • Investor details and address details will automatically be populated in the screen from the Aadhar database
    • The investor then mandatorily need to select the Consent and declaration process for verification of the details for KYC application and to send the OTP to the registered mobile for e-signing the document.

    After completion of the process, investor is now e KYC compiled and can proceed to begin its investment process through mutual funds
    Note: Those investors whose KYC application is under process or has been rejected earlier are not eligible to complete the e KYC process.

    Introduction to CAMS FATCA status
    Abbreviation for FATCA is Foreign Account Tax Compliance Act. It is an agreement between India and United states to achieve greater tax compliance between both countries. Under this agreement, Indian financial institutions have to provide key information to the Indian tax authorities on demand based on certain financial transactions and then the pass on the information to the US agencies.

    The implementation of FATCA came into effect on 31st August 2015 and all Indian investors ( existing and new) who are planning to make investments in mutual funds or in FD had to furnish the FATCA/CRS self-certification form to comply with the regulations.

    How to file FATCA
    FATCA/CRS self-certification form is available with all mutual fund companies and registered mutual fund distributors. The duly filled form can be submitted with all the relevant documents with mutual fund companies and R&T agents ( CAMS, KARVY). Online submission of form can be done through by visiting the R&TA website where your PAN card is used to generate OTP sent to your mobile or email.

    FATCA self-certification form requires details like tax residency status in India with supporting documents like Birth certificate, Occupation, Income certificate. An additional document for proof of identity is required apart from PAN card including Aadhaar, Passport, Voter Id.  The process is mandatory for all Indian investors including NRIs.



  • Hi, this is quite an informative post! Thanks for sharing here. All details like documents required to fill KYC form and other relevant details on eKYC nicely explained.



  • @sdadwal Hi, is e-kyc mandatory for investing in mutual funds? I read it somewhere that nowadays getting e-kyc is compulsory? Is it a lengthy process and how much time it normally takes to get these formalities completed? If I have already got my KYC done while opening a bank account, is it required again? Please guide. I am looking to invest in mutual funds so wish to know these useful details.



  • @sdadwal In this digital age, processes have got much simpler than they used to be in the earlier years. Online assistance and e-kyc further strengthen the role of digitisation in India. It's the age of automation and I really like the way investing processes have been simplified and streamlined.



  • @sdadwal Hi, thanks for sharing this comprehensive post on CAMS and KYC. Once I get my e-KYC completed, I can start investing in mutual funds. It's a one time procedure I believe and I won't have to give details again. Suppose, I change my address do I need to update it? or I can continue with my old details only? Please answer.



  • Yes, KYC is a one-time exercise that has been made mandatory to invest in mutual funds. CAMS has PAN India centres that offers these services. You can easily get your KYC done or update any of your details through them.



  • Yes, KYC is a one-time simple process. You can check your KYC status at https://www.camskra.com/ You can easily view and update any of your details.


 

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