HUF Onboarding On Grip Invest: Complete Step By Step KYC Process Guide

It's been multiple decades since HUFs (Hindu Undivided Families) got recognized as a legal structure under India’s income tax system. Creating an HUF helps you, as a family, in saving tax and availing many other benefits.

Be it a separate PAN card, separate bank account, a separate tax slab or even a separate ITR, HUFs technically give you a second tax identity in the eyes of the law.

HUFs can own assets, earn income, invest money, and even take loans. In this blog, we’ll focus on giving you a walkthrough of the HUF’s KYC and onboarding journey on Grip Invest. 

HUF Onboarding Process: Step By Step Walkthrough

Step 1: Start the Onboarding Journey

The onboarding process begins when the investor receives the onboarding link for KYC request on email from Digio, Grip’s partner platform for KYC and authentication of HUFs .

• You need to click on the onboarding link.
• Choose the option to receive a verification code on the registered email address.

• Enter the OTP received via email to proceed, it is valid only for 10 minutes.
• Verify your HUF contact details, including the mobile number and email address displayed on the screen. Then click on submit.

Step 2: Upload the HUF PAN

The next KYC step requires uploading of the HUF PAN card.

After upload:

• The system auto-reads the PAN details using OCR (Optical Character Recognition).
• Details such as the HUF name, date of HUF incorporation and PAN number are automatically captured.
• You need to confirm these details and then click on Submit.
• Remember that only an HUF’s PAN card is accepted here, an individual’s PAN card cannot be used in this step.
• If the OCR does not correctly capture the information, you can edit the details before submission.

Once you have verified the information, click “Confirm and Submit.”

Step 3: Upload the HUF Bank Statement

The next step is to upload the HUF bank account statement.

While uploading, ensure you review the document properly and fulfill these parameters:

• Your bank statement is not older than three months.
• A cheque leaf is not submitted in place of a bank statement.
• Personal bank account documents should not be submitted here.
• The account number, IFSC code, account holder name, and MICR details should be clearly visible in the statement. 

After verification, click “Confirm and Submit”

Step 4: Review and Verify Address and Bank Details

The Digio system extracts your address information from the uploaded bank statement. Make sure you review the details, such as city, district, state, place of HUF incorporation, bank account number, bank name, IFSC code , account type, etc and edit them if required. Then click on ‘proceed’.

Step 5: Upload HUF Stamp and Signature

This step requires you to upload the necessary HUF seal (stamp) and Karta’s signature on top of the seal. 

Then submit the signature.

Step 6: Complete DigiLocker Authentication

The next step involves DigiLocker verification for Karta’s documents.

During this stage:

• You need to log into DigiLocker with your 6 digit security PIN. 

• If you have not yet signed up on DigiLocker then you would need to do that first through your Aadhaar number and the subsequent OTP.

• Next you need to provide permission to Digio to fetch your documents such as Aadhaar and PAN through DigiLocker.

Step 7: Selfie KYC

This step requires you to first allow Digio to access your location and then your camera.

Now look straight into the camera so that your selfie can be captured. Then click on ‘submit selfie’.

Step 8: Enter Karta Details

This step requires you to enter the Karta's details such as income, father’s name, occupation, gender and marital status. Then click on ‘save’ to proceed.

Another information you need to mention here is the number of members in the HUF (excluding the Karta). 

Step 9: Enter HUF Member Details

The next step requires you to enter each HUF member’s details (excluding the Karta), such as name, date of birth, gender and relationship with the Karta. Then click on ‘save’ to proceed.

Step 10: Declaration and account preferences

• The next step requires you to choose a trading segment, whether its mutual funds or the debt segment.
• You also need to verify if you are a politically exposed person or related to such a person.
• You should also not have any proceedings initiated or pending against you, by SEBI/stock exchanges or any other authority in the last 3 years. 

Then click on ‘save’ to proceed.

Step 11: Complete eSign

Last but not the least, you need to e-sign and submit the KYC application. 

That’s it. Once all checks are done successfully, the HUF onboarding journey is completed.

FAQs On HUF Onboarding Journey

Author: Grip Invest Editorial Team The Grip Invest Editorial Team is a group of Chartered Accountants, MBA (Finance) graduates, and Qualified Research Analysts dedicated to helping you invest smarter. We dive deep into India's fixed income landscape to deliver content that is accurate, up-to-date, and easy to understand. Whether you're exploring bonds, fixed deposits, or other fixed income opportunities, our guides cut through the noise and give you the clarity to make better financial decisions.

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