Earlier financial transactions involved huge amounts of paperwork. It’s not so now. Using the latest innovations these transactions are now entirely paperless. The COVID 19 situations have led to businesses and other institutions searching for more innovative ways to make ‘contactless’ transactions.
The COVID 19 outbreak in India led to a huge dip in the BSE Sensex which went below 26000. When the markets fell, several first-timers took it as an opportunity to make investments in mutual fund schemes as well as equities. However, they were unable to do so due to the total lockdown imposed all over the country by the Indian Government. All services except the essential services were affected by the lock-down.
• Stocks and securities markets continued to function during the lockdown.
• But avenues to make offline investments were shut down.
• The KYC-complaint current investors in a position to make online investments.
• New investors were unable to do so because they couldn’t undergo the process of KYC through conventional methods.
• Certain stockbrokers, RTA's (Registrar and Transfer Agents), and distributors have provided support to the novice investors.
• The support was extended by helping them with the process of eKYC for onboarding of investors.
It was during this period of lockdown that the importance of how useful online services really could be has been realized. The online services also include the process of doing eKYC through video verification.
CDSL Ventures Limited (CVL) Enters eKYC Space
The UIDAI (Unique Identification Authority of India) has approved CDSL Ventures Limited (CVL) to serve as the local KUA (eKYC User Agency) and AUA (Authentication User Agency).
• CVL is a subsidiary of CDSL (Central Depository Services Limited).
• The first listed of all securities depositories in our country that permits holding securities/stocks in the electronic form.
• CVL is also one of the biggest of all KRA’s (KYC Registration Agency) in India.
• With the approval from the UIDAI accounts can be opened online using Aadhaar based eKYC.
• Aadhaar eKYC is done through Aadhaar authentication.
• The identity of the individual is confirmed by the UIDAI based on the biometric and demographic information stored on the Aadhaar database.
• The time required to do online KYC is less.
• Intermediaries who have registered themselves with the UIDAI can also contract services from CVL to act as Sub-KUA’s.
• At present, CVL has more than 2.25 crore KYC records that are digitized.
• These records are accessible to more than 2700 intermediaries spread all over India.
• An online account opening software has been developed by the CVL.
• Intermediaries can use this software to do online KYC and to open new accounts online.
• Online accounts are opened using Aadhaar based eSign and eKYC.
• Aadhaar based eSign and eKYC offered by CVL will facilitate the quick opening of online accounts.
COVID 19 outbreak has restricted almost a third of the total population in the world, which is around 2 billion people, to their homes. Work-from-home has become the only option for many due to the total/partial lock-down of several organizations and institutions.
So far no nation has been successful in containing this virus; hence the entire world has been looking for ‘contactless’ ways of conducting businesses and financial investments/transactions. ‘Contactless’ means transactions have to be made without physical interactions. The entire process must take place digitally.
The entry of CVL into the eKYC space has now proved that by making use of the available online services, digitization of certain types of services can be made possible.
For more information contact us.
We, Finahub, are experts in Aadhaar related products and services like eSign, eKYC, Authentication, etc. If you want to know how your enterprise can start using it, please give us a call @ 0484 2388285 or email us at [email protected]