Isn’t it frustrating to have to get your KYC verified again and again for every new loan or the simplest of bank formalities. Well, your worries are about to come to an end when you hear about what CYKC or Central Know Your Customer is.
What is CKYC?
India has a centralised database that stores the KYC information of customers. Simply put, it’s like a secure digital vault for your identity and personal information. So, when you wish to open an account or invest, you wouldn’t have to submit your KYC every time. Instead, the banking institutions are able to access your CKYC information directly, making the process faster and easier for you.
- CKYC is a unique 14 digital number linked to your ID for easy access to all identity documents.
- The submitted documents are inspected and verified before acceptance
- All banking and investing institutions are notified upon any changes in KYC details.
Benefits of Central KYC Registry
- CKYC as a process is easier, faster, and, most importantly, more secure.
- CKYC enables financial companies to verify documents quickly and safely.
- Investors need not submit KYC each time before starting a new financial investment.
- Investors have access to update their CKYC details, as and when required.
- The same CKYC number can be used to buy or invest across various financial instruments like insurance, mutual funds, and stock markets.
The CKYC Registry
The Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) is the governing body under the Government of India that serves as a centralised repository for KYC records. The primary goal of CKYCR is to maintain a standardized KYC process that can be used across various financial institutions and help in reducing redundancy, enhancing efficiency, and ensuring compliance with regulatory requirements.
How can you complete your CKYC?
- Find a financial institution(Banks, insurance companies, mutual funds, and other financial institutions) registered with CKYC
- Submit the required documents like PAN card, Aadhaar card, and proof of address
- The financial institution will verify your documents with the issuing authorities.
- Upon successful verification, you will receive a unique 14-digit CKYC number
How can you check your CKYC Number?
Follow the below steps to easily be able to view your CKYC Number:
- Open www.karvykra.com on your desktop or mobile
- Enter your PAN number
- Fill in the displayed CAPTCHA/security code
- Successfully view and download your CKYC report
4 Types of CKYC Accounts
In India, the CKYCR recognizes 4 types of CKYC accounts based on the verification and documents submitted by a customer, namely:
- Normal CKYC Account: For individuals who provide all required KYC documents, have full access to financial services and products without any restrictions on transactions.
- Simplified/Small* CKYC Account: For individuals who only have an official valid document (OVD) as a proof of identity (e.g., voter ID, driving license). They have limited access to financial services with restrictions on transaction limits (typically up to ₹1 lakh per year).
- OTP-Based* e-KYC Account: For individuals who authenticate with an Aadhaar-based electronic KYC process, completed through a one-time password (OTP) sent to the Aadhaar-registered mobile number. Limited to certain transaction thresholds, this account is suitable for individuals who require quick and basic financial services.
- KYC Account for Non-Individual Entities: For non-individual entities such as companies, partnerships, trusts, and other organizations. This account provides access to a range of financial products and requires comprehensive documentation for compliance and verification.
(*Only valid for a specified period unless converted to a normal CKYC account)
How does CKYC benefit me as a customer?
CKYC allows you to complete your KYC process just once, saving you from repeated submissions and verifications.
Can I update my CKYC information?
Yes, you can update your CKYC information by submitting the updated documents and details to any financial institution. The institution will update your information in the CKYC registry.
Is CKYC mandatory for all financial transactions?
CKYC is required for most financial transactions involving banks, mutual funds, insurance, and other financial services to comply with regulatory requirements and prevent money laundering.
Can I have multiple CKYC IDs?
No, each individual or entity is assigned a unique CKYC ID.
What should I do if my CKYC information is incorrect?
If you find any errors in your CKYC information, you should contact the financial institution that uploaded your KYC data and request a correction.
How long does it take to register for CKYC?
The registration process for CKYC typically takes a few days, but it can vary depending on the processing time of the financial institution and the completeness of your documentation.
Does CKYC apply to non-resident Indians (NRIs)?
Yes, NRIs can also register for CKYC by submitting the necessary documents, including proof of identity and proof of address.
What happens if I don't register for CKYC?
Without CKYC registration, you may face difficulties in opening new accounts or availing financial services, as most institutions require CKYC compliance to meet regulatory standards.