What is CKYC

CKYC stands for Central Know Your Customer. It is a centralised storehouse of KYC records of customers getting various financial services across institutions, like banks, insurance companies, Non-banking Financial Companies (NBFCs), etc. For financial institutions, this new streamlined process of CKYC has removed the hassle associated with onboarding customers through multiple KYC verifications.

What is the Central KYC Registry?

The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is entrusted with keeping the KYC records of customers in a central repository. Maintaining standardised KYC records in a central data pool ensures that the data can be used across different financial institutions, thus providing ease and convenience to customers and institutions.

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Features of CKYC

CKYC, or Central KYC, offers several features:

1. Customers get a unique 14-digit KYC number linked to their ID for easy access to all identity documents.
2. Securely stores customer details electronically, eliminating the need for physical copies.
3. Documents undergo thorough inspection and verification before being accepted.
4. Changes to KYC details are quickly reflected across all connected institutions, maintaining an up-to-date database.

What is the process of completing CKYC?

The process of getting CKYC done can be broken down into the following steps:

1. Find a CKYC service provider

The first step is to find a financial institution or authorized service provider that offers CKYC services.

2. Gather required documents

To get your CKYC done, you will need to provide personal information and supporting documents, such as ID proof, address proof and photograph.

3. Submit information and documents

Submit your information and supporting documents either physically at the service provider's office or electronically, depending on the provider's process.

4. Verification process

The service provider will verify your information and supporting documents to ensure they are accurate and authentic.

5. Receiving CKYC number

Once the verification process is complete, you will be issued a unique CKYC number, which you can use to access various financial services in the future.

It is important to note that the process of getting CKYC done may vary depending on the service provider you choose, so it is important to check with them directly for specific details and requirements.

How Does it Work?

The Central KYC (CKYC) process simplifies investing in India. It eliminates the need to repeatedly provide your Know Your Customer (KYC) information for each new investment. With CKYC, you complete the KYC verification process once and receive a unique 14-digit identification number. This number can then be used for all your future investments.

Completing the online CKYC form is the first step in the process. It includes providing basic information (name, address, contact details) along with supporting documents. You will need proof of identity, proof of address, and photographs for verification. CERSAI then reviews your information and updates your KYC status.

Documents required for CKYC

The following documents are required to complete the Central Know Your Customer (CKYC) process:

• Proof of identity (POI): Any government-issued photo ID, such as Aadhaar Card, passport, driving licence, etc.
  
• Proof of address (POA): Any government-issued document that establishes your current address, such as Aadhaar Card, passport, driving licence, voter ID, etc.
  
• Recent passport size photographs.
• PAN card details.
• Bank account details (if applicable).

Note: The exact documents required may vary based on the type of entity and the financial products or services being availed.

How to check CKYC status online?

To check your Central KYC (Know Your Customer) status online, you can follow these steps:

1. Visit the website of the financial institution where you have an account or have done your CKYC.
2. Look for a section called “CKYC” or “Customer Services” or similar.
3. Log in to your account using your user ID and password.
4. Check for the option to view your CKYC status. This may be labeled as “CKYC Status,” “CKYC Details,” or something similar.
5. Click on the option to view your CKYC status.
6. Your CKYC status will be displayed on the screen, indicating whether your KYC is complete or not.

Note: The process for checking CKYC status may vary based on the financial institution and their website. If you are unable to find the option, you may contact the customer service for assistance.

How is CKYC beneficial?

CKYC is a one-time process that saves time, and energy. It permits investors to complete their KYC just once. CKYC consistency will enable an investor to execute/manage all elements administered/directed by the Government of India/various controllers (RBI, SEBI, IRDA, and PFRDA) without finishing different KYC conventions.

The benefits of CKYC include:

1. Streamlined verification process
   CKYC simplifies the KYC process by reducing the number of times an individual has to submit their information.
2. Improved security
   By centralising customer information, CKYC makes it easier to detect and prevent fraudulent activities.
3. Reduced paperwork
   CKYC eliminates the need for customers to submit multiple copies of their KYC documents to different entities.
4. Improved customer experience
   With a centralised database, customers no longer have to go through the hassle of submitting their information repeatedly, saving time and effort.

Improved data management: CKYC makes it easier for financial institutions to access and manage customer information, improving their overall efficiency.

Impact on Existing Investors

Currently, existing investors aren't required to complete the CKYC process, though this might change. CKYC is a valuable initiative designed to streamline onboarding for new investors and protect the interests of both customers and financial institutions. This simplified system has the potential to increase participation in the financial sector, ultimately benefiting everyone involved.

How long is CKYC valid?

With CKYC, you complete the online registration process only once, and it remains valid for life. Update your CKYC status online whenever needed. This system streamlines investment processes for both investors and financial instituion, leading to broader market participation. CKYC makes financial transactions easier and more convenient for everyone involved.

Types of CKYC accounts

There are four types of accounts:

1. Normal account
   This account is created when you submit any six official documents as proof of identity: PAN, Aadhar, driving licence, Voter Id, passport and NREGA job card.
2. Simplified/Low-risk account
   Those who cannot submit any of the six official documents can submit Other Valid Documents (OVDs) like utility bills, Aadhaar letter issued by UIDAI and Job Card issued by NREGA signed by a State Government official. as specified by the RBI.
3. Small account
   Customers with no official documents can open a small CKYC account by submitting a filled-in form with a photograph. These accounts are subject to restrictions in transactions along with limited validity.
4. OTP-based eKYC account
   This account is created if you submit an Aadhaar-based PDF file, downloaded from the UIDAI website and enabled by an OTP.

Like the CKYC you have OKYC as well. The difference is, while OKYC allows customers to share their details for KYC verification through offline Aadhaar XML or QR code by visiting UIDAI's website, CKYC is a one-time KYC compliance process to avail of multiple financial services across institutions.

Difference between Normal KYC, eKYC, and CKYC?

KYC (Know Your Customer) is the processdown
of verifying the identity of a customer. The differences between normal KYC, eKYC, and CKYC are:into the following steps:

• Normal KYC: This is the traditional method of KYC, where customers physically visit a financial institution to provide their personal information and identification documents.
• eKYC (Electronic KYC):eKYC is a digital version of the KYC process, where customers submit their information and ID documents electronically. This process can be completed through a mobile app or website.
• CKYC (Central Know Your Customer): CKYC is a centralised database of customer information maintained by the Indian government. Financial institutions can access this database to verify the identity of their customers, reducing the need for customers to submit their information multiple times.