Page 30 - Banking Finance June 2020

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For life insurance, the companies look at credit score and is paperless. It takes about seven working days to process
income as their experience shows that those with better the KYC. However, a person can invest even while the KYC
financial health and income would also take care of their is under process.
health. For health insurance, companies rely on doctors'
consultation over the phone. According to their research, Using video KYC offered by mutual funds, new investors can
customers are more open when a doctor is talking to them. start their investments in mutual funds without going to the
The results are better than even medical tests. funds' offices, provided they have online banking access. One
can also go directly to the fund's website and initiate video
In life insurance, many private companies allow for claims KYC (this is in-person verification or IPV to make sure one is
to be lodged digitally. For health insurance, the claims are alive) if one is not KYC compliant. Take photographs of PAN
cashless in network hospitals. and an address proof and upload the documents. Fill the
form correctly else, in case of discrepancy, the KYC
Mutual Funds and NPS application can be rejected.

Although the finance minister has extended the deadline to
Even in times of a lock-down, fund houses' call centres are
invest in tax-saving instruments to June 30, 2020, one could
open to guide. But be prepared to wait for a little longer
use this time on hand to learn the ropes of online investing.
on account of staff shortage. Separately, online distribution
platforms are also available in case you want to open a
Though the branch offices of mutual funds and registrar &
transfer agents are shut, they continue to accept online digital account.
applications. If one has invested through the 'paper and
For the National Pension Scheme (NPS), existing subscribers
cheque' route, one can still transact in their existing mutual
fund folios using online means. Visit the fund house's website can continue investing online using the Unified Payments
Interface (UPI). Those who want to open a new NPS account
or download its app on smart phone and register with the
help of your folio number, Permanent Account Number (PAN), can do so online on to the National Pension Trust website
email ID and mobile number linked with the folio. A One-Time www.npstrust.org.in.
Password (OTP) is sent to your email and phone number. Use
it to verify your identity and your online account is created. Conclusion
You can then easily redeem your investments. You are now Most of the essential financial services are now available on
set to sell, switch or even purchase new units. The same is digital platforms. Even for first-time users, signing up and
true for existing customers already using digital channels. on-boarding is now easy and paperless.

If one is already have internet banking facility, one can make Finally, take enough safety precautions to ensure that one
fresh purchases or set up systematic investment plan (SIP) do not fall prey to tricksters who are on the lookout for
online. If one is investing through a mutual fund distributor, vulnerable victims, especially in times such as these. Social
the advisor also can help by creating a transaction on the media platforms have been abuzz with messages from
website of a mutual fund. fraudsters peddling fake apps and links devised to elicit
sensitive account, card and PIN details. Never forget that a
However, there are multiple options for first-time investors bank, insurance company, credit card issuer or a digital
who want to opt for mutual funds in falling markets. There wallet will not ask for such details. The call centres are open,
are several online platforms and mobile apps you can use, so don't hesitate to seek help. With a skeletal staff though,
including PayTM Money, Mobikwik, Zerodha Coin, Kuvera, your waiting time might just be a little longer.
Groww and Scripbox.
References:
The onboarding for most of these apps is simple, and an https://www.businesstoday.in
individual can start investing immediately. "Even if a person https://www.livemint.com
has not done the KYC (know your customer) formalities https://www.moneycontrol.com
before, it can be done through apps instantly. The process https://economictimes.indiatimes.com T

30 | 2020 | JUNE | BANKING FINANCE