Tired of submitting the same KYC documents every time you open a new bank account or invest in a mutual fund? Central Know Your Customer (CKYC) is a revolutionary initiative by the Indian government that simplifies the KYC process by centralizing customer information across financial institutions.
CKYC, or Central Know Your Customer, is a centralized database that stores customer KYC information for financial institutions. It ensures a uniform KYC process across banks, mutual funds, insurance companies, and NBFCs, eliminating the need to repeatedly submit KYC documents for new financial relationships.
The CKYC system was introduced under Section 73 of the Prevention of Money Laundering Act, 2002, granting the central government the authority to curb black money through standardized KYC regulations. The Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) manages the CKYC registry.
• Uniform KYC Record: CKYC stores a single KYC record accessible across all financial institutions.
• 14-digit CKYC Number: Each customer is assigned a unique CKYC identifier linked to their ID proof.
• Digital Storage: KYC documents are securely stored in an electronic format.
• Real-Time Notifications: Updates in KYC details trigger notifications to all concerned institutions.
• Secure Authentication: CKYC uses advanced security mechanisms for access and data protection.
• Inter-usability: The KYC record can be accessed by banks, mutual funds, and insurance companies without re-submission of documents.
When you invest in mutual funds or open a bank account, you submit KYC documents. These are verified and uploaded by the financial institution to the CKYC database managed by CERSAI. You then receive a unique 14-digit CKYC number, which you can use for future transactions without submitting documents again.
Example:
If you have completed CKYC with Bank A and later decide to invest in a mutual fund with Company B, you only need to provide your CKYC number. Company B retrieves your verified details from the CKYC database, eliminating document re-submission.
Financial institutions regulated by the following bodies can register customers for CKYC:
• Securities and Exchange Board of India (SEBI)
• Reserve Bank of India (RBI)
• Insurance Regulatory and Development Authority of India (IRDAI)
• Pension Fund Regulatory and Development Authority (PFRDA)
Step 1: Find a Participating Financial Institution
Banks, insurance companies, mutual funds, and NBFCs can help complete the CKYC process.
Step 2: Submit Required Documents
Provide:
• PAN Card
• Aadhaar Card
• Address Proof
• Passport-sized Photograph
• Signature Sample
Step 3: Verification by Financial Institution
The institution verifies documents with the issuing authorities and uploads them to the CKYC registry.
Step 4: Receive Your CKYC Number
Upon successful verification, you receive a 14-digit CKYC number that financial institutions can use to access your details.
a. Visit www.karvykra.com (Karvy and CDSL provide CKYC check facilities).
b. Enter your PAN number.
c. Enter the CAPTCHA/security code displayed.
d. Your CKYC number and details will be displayed.
Created when submitting any of the following six identity proofs:
• PAN
• Aadhaar
• Voter ID
• Driving License
• Passport
• NREGA Job Card
For customers providing alternate officially valid documents (OVDs) as per RBI guidelines. Identifiers are prefixed with ‘L’.
Issued when only personal details and a photograph are submitted. Identifiers are prefixed with ‘S’.
Created when submitting an Aadhaar PDF downloaded from the UIDAI website using OTP authentication. Identifiers are prefixed with ‘O’.
Yes. Financial institutions regulated by SEBI, RBI, IRDAI, or PFRDA must register all customers under CKYC.
Existing mutual fund investors are not required to undergo CKYC unless they invest in a new mutual fund house, in which case CKYC becomes mandatory.
• Seamless Verification: Financial institutions can verify customer documents quickly.
• Time-Saving for Investors: No need to repeatedly submit KYC documents.
• Easy Updates: Customers can update their details on the CKYC registry.
• Single KYC for Multiple Transactions: Use your CKYC number for investments, insurance, stock trading, etc.
With CKYC, financial transactions in India have become faster, more secure, and more convenient. The central KYC registry eliminates redundancy, ensuring a hassle-free experience for both customers and financial institutions. For professional assistance, reach out to us on email: info@returnfilings.com or on whatsapp: https://wa.me/919910123091.
The Central KYC Registry is a centralized repository of KYC (Know Your Customer) information of customers of financial entities in India. It aims to streamline the KYC process and reduce duplication of effort by allowing customers to complete their KYC only once and then share it with other financial institutions.
The primary purpose of CKYC is to:
o Simplify the KYC process for customers.
o Reduce the administrative burden on financial institutions.
o Enhance transparency and security in financial transactions.
o Prevent money laundering and other financial crimes.
When a customer completes their KYC with a financial entity (e.g., bank, mutual fund, insurance company), the information is uploaded to the CKYC registry. The customer receives a unique CKYC identifier. The customer can then share this identifier with other financial entities, who can then access the KYC information from the registry, eliminating the need for the customer to repeat the process.
Regulated financial entities, including banks, mutual fund houses, insurance companies, and other entities notified by the government, can register customers for CKYC. These entities are known as “Reporting Entities” under the CKYC regulations.
Customers are registered for CKYC by the financial entity where they first open an account or establish a relationship. The customer needs to provide their KYC information to the financial entity, which then uploads it to the CKYC registry. Customers cannot directly register themselves with CKYC.
CKYC stores KYC information, including:
o Personal details (name, address, date of birth, etc.).
o Identity proof (Aadhaar, PAN, passport, etc.).
o Address proof.
o Photographs.
o Other relevant KYC information as specified by regulations.
You can obtain your CKYC number from the financial entity where you initially completed your CKYC. They are obligated to provide it to you. There is no central public portal to directly retrieve your CKYC number.
You need to update your KYC information with the financial entity where you originally registered. They will then update the information in the CKYC registry.
If your existing KYC is compliant with the CKYC norms, the financial entity you are dealing with can upload it to CKYC. However, they will still need to perform their own due diligence.
Benefits include:
o Simplified KYC process: Complete KYC only once.
o Reduced paperwork: No need to submit KYC documents repeatedly.
o Faster account opening: Reduces the time taken to open new accounts with different financial institutions.
While CKYC is not strictly mandatory for customers, it is highly encouraged as it significantly simplifies the KYC process. Financial institutions are increasingly relying on CKYC, making it practically essential.
There is no fee for customers to register for CKYC.
Contact the financial entity where you initially registered and request them to correct the information.
Contact the financial institution where you registered.
Update with the original registering institution.
Simplified KYC, reduced paperwork, faster account opening.
Not strictly mandatory, but practically essential.
Most regulated financial entities.
Through a financial institution.
Central Know Your Customer.
There is no central document to download; the information is accessed electronically by financial entities. You can know your CKYC number online through www.karvykra.com
