Central KYC (CKYC)
Central KYC, or CKYC, is a revolutionary initiative by the Indian government. It simplifies the Know Your Customer (KYC) process. This centralised database stores your KYC information across various financial institutions.
By completing the CKYC process, you could eliminate the need to submit documents for future investments. It fosters a smoother onboarding experience and enhances efficiency within the financial sector.
Understanding Central KYC Registry
The Central KYC Registry (CKYCR) is the backbone of India's centralised KYC system. The following are some of its notable characteristics:
The database stores your standardised KYC information
It eliminates the need to submit documents again when seeking financial services across institutions
Once registered, a unique CKYC number allows financial entities to access and verify your KYC details seamlessly
This streamlines the onboarding process and saves you both time and effort
It promotes efficiency in the financial sector, ensuring robust customer verification
Features of CKYC
For customer identification purposes, here are some features of the CKYC system:
The customer ID proof connects with a unified KYC number. If you are thinking what the CKYC number is, it is a 14-digit unique number. It ensures all customer documents are accessible with this number
For authorised institutions, CYKC stores all customer information in a centralised database. This ensures the process is not manual, and this database is available only for relevant individuals
Before accepting the documents, the set standards verify all the details accordingly
The centralised database ensures update in a customer document is seen faster in all the connected institutions
How to Complete the CKYC Process
You need to follow the steps outlined below to complete the process:
Choose a participating financial institution, such as banks, Asset Management Companies (AMCs), or insurance companies registered with CKYC
Submit necessary documents, including Aadhaar card, PAN card, and proof of address
The branch will verify your documents and process them for uploading on the CKYC Registry
After successful upload, you will receive a 14-digit CKYC Identifier for future financial services
Note: Procedures may vary; follow the specific instructions provided by the financial institution.
It is important to remember that if your KYC is already verified, the site will prompt you to modify your existing details.
How CKYC Works
The CKYC system requires all borrowers lending from banks and NBFCs or investors investing in the stock market to provide their KYC details. These details are later used in all other loans or investments.
For this, you initially contact any investment company or firm that asks for KYC documents such as Aadhar or PAN Cards. Then, they are sent to the Central Registry of Securitisation Asset Reconstruction & Security Interest of India (CERSAI).
The institution then allocates a unique identifier number to you. Further to fill KYC details online, a form is available that needs basic details with ID proofs. After the form submission, CERSAI updates KYC details. The online procedure saves time and makes the process quick.
Documents Needed for CKYC
The documents required for CKYC typically include the following:
Document Type |
Accepted Documents |
Proof of Identity (Any One) |
|
Proof of Address (Any one) |
|
Proof of Income (If applicable) |
|
Other documents |
|
Note: The list above is not exhaustive, and additional documents may be requested based on the institution's policies and regulatory compliance.
How to Check Your CKYC Status Online
You can follow the steps below to check the status of your application online:
Visit the CKYC website and click on ‘Login’ or ‘Register’ (if you are a new user)
Use your credentials to log in
Enter your PAN card number
Proceed by entering the displayed security code
The screen will display the status
Benefits of CKYC
This centralised database ensures quick and streamlined access to financial services. Here are some key benefits of CKYC you need to know:
Efficient KYC Processes
Streamlines and standardises KYC across financial institutions, reducing redundancy
Preventing Duplication
Customers undergo KYC only once, preventing redundant efforts with multiple institutions
Swift Customer Onboarding
Enables quick retrieval of customer details, expediting the onboarding process
Enhanced Security
Includes biometric data, adding an extra layer of security and reducing identity fraud risks
Regulatory Compliance
Helps institutions comply with regulatory standards for customer identification
Financial Inclusion
Facilitates broader access to financial services, especially in remote areas
Centralised Monitoring
Allows for better monitoring and management of customer data
Impact of CKYC on Existing Investors
Currently, the existing customers are not required to complete the process again, although this can change in the future. CKYC is for new borrowers and investors and it simplifies the process for customers as well as financial institutions.
As this process is not valid for existing customers, there is no influence on them.
Validity Period of CKYC
Even though the CKYC process is only for new investors and is only done once, it has a lifetime validity. Although, you can update your KYC details whenever you need to. Also, as the CKYC makes the transactions easier, the process is convenient and has a lifetime validity.
Types of CKYC Accounts
The Central KYC form categorises accounts into four types. Here are the details:
Normal Account
Accepts six officially valid documents (PAN card, Aadhaar card, Voter ID, Passport, Driving licence, NREGA Job Card) for customer identification
Simplified Measures Account
Allows additional OVDs as per RBI guidelines, and the CKYC identifier for this account has the prefix 'L'
Small Account
Requires only personal details and a customer-certified photograph for submission. The CKYC identifier for Small Account has the prefix 'S'
OTP-based eKYC Account
Involves generating a PDF file with Aadhaar data obtained during eKYC/OTP-based KYC. Upload this file, along with a photograph, into CKYC. The identifier for these accounts has the prefix 'O'.
Understanding these distinctions helps tailor the KYC process based on the chosen account type. It ensures flexibility and adherence to regulatory guidelines.
Difference between Normal KYC, eKYC, and CKYC
The difference between a normal KYC, eKYC, and CKYC is as given below:
Parameters |
Normal KYC |
eKYC |
CKYC |
Transactions |
Financial Institutions |
Financial Institutions |
All companies registered with SEBI, RBI, IRDA, and PFRDA |
Documents |
KYC form and supporting documents |
Aadhaar card |
CKYC form, address proof, ID proof, and a photograph |
Verification Needed |
In-person verification after application submission |
Biometric or OTP based |
Documents and application forms verified by CERSAI |
How to Update CKYC Details
To update your details, follow the steps mentioned below.
Visit the CKYC website
Sign in with your CKYC login credentials
Click on the ‘Update KYC’ tab
Enter the verification OTP sent to your registered mobile number
Update details such as your email address, mobile number and residential address
Frequently Asked Questions
Why was CKYC introduced?
Due to the reason that there are so many cases of tax evasion, money laundering, and fraud, the KYC and CKYC systems were introduced in India.
Who can do CKYC?
Financial institutions that are regulated by SEBI, IRDAI, RBI, and PFRDA can carry your CKYC. They can all register their customer's KYC details in the CKYC database system.
What is the CKYC ID?
CKYC ID, or unique identification, is a unique 14-digit number allocated differently for each customer. This number is allocated with the ID proof.
Can I use CKYC to open a bank account?
Yes. As the CKYC is a mandatory step that banks take to reduce illegal activities, it does not require additional KYC. The customers can open a bank account without additional KYC using CKYC details.
Is CKYC mandatory?
Yes. CKYC is mandatory for verification, especially if you are investing in the stock market or mutual funds. It makes sure that you comply with all rules and regulations.
How can I check my CKYC status?
You can only check the CKYC status with CSDL and Karvy. You can navigate to the official website of Karvy and enter your PAN number. Then enter the Captcha, and you can see the CKYC number and other details on the screen.
Can foreign nationals do CKYC?
Yes. Foreign nationals can also do CKYC as mentioned in the CKYC application form online.
How long does it take to complete the CKYC process?
It can generally take 15 days to complete the CKYC process, along with verification.
What happens if I don’t complete CKYC?
CKYC is mandatory for opening a new bank account, and without a CKYC registration, RBI does not allow opening any type of account after 2004. Hence, you will not be able to open any bank, demat, or reading account without CKYC.
How can I link my existing KYC with CKYC?
If you are an existing customer, you no longer need to again register for CKYC in India. You can update the CKYC details by submitting a KYC form at the bank branch when redeeming a new product or investment plan.
What is the role of CERSAI in CKYC?
Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) is the main institution that verifies all the information. It also maintains the record in a centralised KYC database.
Is the CKYC process the same for all financial institutions?
Yes. The CKYC process is the same for all customers and financial institutions like banks.
What if my CKYC application is rejected?
Due to missing or incorrect information, the CKYC application is rejected. If you see that your CKYC is rejected, you can check the reason and reiterate the next steps to approve your CKYC status.
Can I use CKYC for mutual fund investments?
Yes. CKYC allows investing in mutual funds provided by AMCs. For this investment type, they do not need to redo the KYC every time.
Can I change my mobile number or email address in the CKYC system?
To update any outdated details in CKYC, you must log in to the KYC portal and click on Update. An interface will open, and you must then make changes. After entering the OTP, your request is sent and updated accordingly.
How can I download my CKYC Certificate?
To download the CKYC Certificate, navigate to the Karvy website and click on the PAN search tab on top. Enter your PAN details and captcha and search. You can then download the certificate.
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