The main objective of the Central Know Your Customer (CKYC) initiative is to set up a framework that stores KYC documents. Launched by the Indian Central Government, it ensures that investors and traders need to go through the KYC process only once.
With this initiative, the government aims to reduce the cumbersome procedure of completing KYC processes whenever you wish to interact with financial companies. CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest of India) oversees the initiative.
The Central KYC Registry, or the CKYCR, stores all KYC-related information about investors in the Indian market. Read on for an in-depth overview of CKYC, its importance, and more.
The CKYCR stores all KYC and relevant information of every investor/trader in the Indian financial market. This body is in charge of maintaining standard norms related to KYC. It also enables free inter-usability of all records across pertinent sectors.
The launch of the Central KYC initiative helps reduce the hassle investors and traders go through with repeated KYC processes.
In addition to ensuring a one-time KYC process for all investors and traders, the CKYC initiative is uses electronic mediums to:
Safely store and process KYC data
Prevent fraud and scams
Ensure transparency and accountability
Reduce costs greatly
Ensure real-time notifications pertaining to KYC-related processes
The benefits of the Central KYC Registry are as follows:
There is a single, standard KYC process in place for all investors and traders engaged or planning to engage in the Indian financial markets.
The agency is responsible for ensuring due diligence of all information and processes.
The Central KYC Registry also helps prevent fraudulent activities like money laundering. This is done by ensuring that all KYC-related processes take place under its strict and diligent ambit.
Equipped with the latest technology, the CKYCR offers data management and synchronisation. This makes it easier to process the information received digitally.
The CKYCR is the sole body working on KYC-related information. It is thus able to reduce costs and increase efficiency of routine KYC checks and securing the collected data.
Using the latest technology, the initiative strives to ensure all concerned parties are notified of changes in their application status. This helps investors and traders in getting updated in real time.
Once you complete the steps and successfully register on the CKYC portal, you will receive a 14-digit KIN or KYC Identification Number. Whenever you wish to avail of financial services, use this 14-digit KIN to indicate your CKYC is complete.
If you wish to check the status of your CKYC application online and prefer initiating a CKYC number check online, follow the steps mentioned below.
Step 1: Visit the CKYC website and use your credentials to log in
Step 2: Enter your PAN card number
Step 3: Proceed by entering the displayed security code
Step 4: The screen will then display your CKYC number and the status of your application
To update your CKYC details, follow the steps mentioned below.
Step 1: Visit the CKYC website, and use your credentials to log in
Step 2: Click on the ‘Update KYC’ tab
Step 3: Enter the verification OTP sent to your registered mobile number
Step 4: Update details such as your email address, mobile number, and residential address
The difference between a normal KYC, eKYC, and CKYC is as given below:
|
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, once the application is submitted |
Biometric or OTP based |
Documents and application forms verified by CERSAI |
Authorised institutions, IRDAI, MCA, SEBI, and RBI, can access the CKYC records.
In the CKYC registry, available search tabs include Asset-based Searches, AOR Searches, Debtor-based Searches, MIS Reports, Online Reports, Batch Reports, and RMS Reports.
Yes, you require a digital signature to log in.
If your CKYC application is rejected, you will not receive notification of the same by CERSAI. However, the firm applying on your behalf will get notified and can re-apply.
You can expect to receive your CKYC ID and your KYC Identification Number (KIN) within 4-5 days of your application’s approval by CERSAI.
To obtain a CKYC number, you need to approach a financial institution registered with CERSAI and provide the required KYC documents and information. After verification, a CKYC number will be generated and provided by the financial institution.
CKYC is provided by the Central Registry of Securitization and Asset Reconstruction and Security Interest of India (CERSAI).