Zerodha co-founder and CEO Nitin Kamath has suggested the finance ministry to revise the “cumbersome” process of opening demat accounts online for non-resident Indians (NRIs).
The Zerodha boss said that Indian markets are doing well, there is a lot of interest to invest here. However, he believes that the difficult onboarding process leads to massive drop-offs.
“permission NRI Online demat account opening is an easy way to attract money in India. Today’s process is physical and cumbersome. With Indian markets doing well, there is a lot of interest to invest here, but the tedious process of the board leads to massive declines,” Kamath tweeted.
Zerodha CEO stresses on making onboarding for NRIs “completely digital”.
Elaborating further, he said, “Since NRIs send and receive money from bank accounts with KYC, we can make onboarding completely digital and make it as easy as a trading account for a resident Indian to open.”
He wrote on Twitter, ‘Online onboarding is the main reason for increasing retail participation in India.’
Kamath explained the process of digital onboarding of NRIs in two parts.
“Onboarding has 2 parts: KYC and Authorization (Sign). NRIs having NRE/NRO bank account will already have updated KYC, which will be accessible to other financial intermediaries through CKYC. NRIs have e-Sign There cannot be an Aadhaar linked to an Aadhaar or an Indian mobile number,” he said.
Kamath tagged the finance ministry and asked: “Now that we are allowing UPI for NRIs mapped to their international numbers, what if we can use it to authorize (e-sign) and enable online trading and How to open a demat account? @FinMinIndia”
He also said that NRIs are among the wealthiest people outside India. “We need to make it easier for them to invest back home,” Kamath wrote in a Twitter thread.
UPI for NRI
The National Payments Corporation of India (NPCI) recently allowed NRIs from 10 countries to transfer funds digitally using the Unified Payments Interface (UPI) platform from NRE/NRO accounts.
NPCI said it is receiving requests to allow non-residents to use international mobile numbers for transactions in UPI.
In the first phase, phone numbers from 10 countries – Singapore, Australia, Canada, Hong Kong, Oman, Qatar, USA, Saudi Arabia, UAE and UK – have been allowed to be used on UPI. NPCI said that it may extend it to other countries as well.
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