In recent years, mutual fund companies have started using a new method to verify the identity of their investors. This method is called eKYC Service or electronic know your customer service. But the question is, why are so many companies switching to this digital solution?
Here in this post, we will explore what is Aadhaar-based eKYC service is, how it works, and why it is becoming a popular verification method among mutual fund companies.
What is eKYC?
Before we understand Aadhaar-based eKYC, let’s first understand what KYC is. KYC stands for Know Your Customer is a process that you can use to verify the identity of your customers. So that you can make sure that you are dealing with the right person. eKYC for MF is required as per the law before anyone can start investing in mutual funds. So we can say that eKYC for Mutual Fund is a mandatory process for them.
Traditionally, investors need to submit physical documents and wait for approval. Now, with Aadhaar eKYC Online, they can complete the process online within just minutes. Along with that, they can do this by just entering their Aadhaar number and other KYC details like PAN.
What is Aadhaar-Based eKYC Service?
Aadhaar-based eKYC uses your investor Aadhaar number and a one-time password (OTP) sent to your registered mobile number. So that you can verify their identity instantly and eliminate the need for physical documents.
Platforms like Meon KYC make this process even smoother by integrating directly with UIDAI (the Aadhaar authority). So users can complete the process in just a few clicks. Meon eKYC for MF platform can handle the technical backend securely, while mutual fund companies can instantly verify the investors.
Why Are Mutual Fund Companies Adopting eKYC Service?
Faster Onboarding
Many platforms, such as Meon KYC, enable real-time Aadhaar authentication using OTP. Investors can complete the entire KYC process in under 2 minutes, with instant validation and confirmation. So that mutual fund companies can onboard customers almost instantly, reducing drop-offs and boosting conversions, especially during high-demand periods like NFO launches or SIP campaigns.
Paperless Process
eKYC for Mutual Fund is a fully digital and API-based process. This means there is no need for paperwork and manual uploads. It auto-fetches customer details like name, address, and date of birth directly from Aadhaar (with consent). So that you can eliminate the errors caused by manual data entry. This leads to better data hygiene and a smoother compliance process for mutual fund back offices.
Cost-Effective
eKYC service offers a cost-effective verification solution to mutual fund companies. Many platforms, such as Meon Technologies, offer pay-as-you-go pricing, so mutual fund companies only pay for what they use. This makes Aadhaar e kyc Online far more affordable than traditional KYC methods, which require physical manpower, courier services, and storage. Over time, companies save significantly on operational costs, especially at scale.
Wider Reach
By using the eKYC Service, customers can complete their KYC on their phone, even from Tier 2 and Tier 3 cities and rural areas. There is no longer a need for them to physically visit a branch. This helps mutual fund companies grow in under-served regions and attract new investors who were earlier excluded due to KYC barriers
Improved Security
eKYC for MF providers like Meon uses bank-grade encryption, OTP-based verification, and full compliance with UIDAI and SEBI guidelines. This ensures that customer data is secure and tamper-proof. Additionally, Meon supports IP whitelisting and audit logs, so mutual fund companies can monitor all KYC activity and easily detect suspicious behaviour.
Regulatory Approval
eKYC Service works within the legal framework set by SEBI, UIDAI, and CDSL/KRA. It provides full audit trails, timestamping, and legally compliant customer data files, so that mutual fund companies can stay compliant with regulatory requirements. Platforms like Meon Technologies also support real-time data push to KRA systems, reducing backend work.
Final Thoughts
eKYC Service is changing the way people invest in mutual funds in India. So that they can offer a quick, simple and accessible verification and onboarding solution to everyone, even in remote areas. By adopting this technology, mutual fund companies are not only saving time and money but also helping more Indians become investors.
If you are planning to invest in mutual funds and haven’t completed your KYC yet, Aadhaar-based eKYC is a great option to get started. It’s safe, fast, and can be done from the comfort of your home.
