Central Know Your Customer (CKYC)

Mentioned below are the key features of the Central KYC (CKYC) system: 

1. The CKYC provides the customers with a unique 14-digit KYC number linked to their ID, enabling seamless access to all identity documents. 

1. The CKYC securely stores customer information electronically, eliminating the need for physical documentation. 

1. It ensures all documents are thoroughly inspected and then verified before acceptance. 

1. Updates to KYC information are swiftly reflected across all associated institutions, ensuring a consistently current database. 

What is the Process for Completing Central KYC?

The stepwise process for completing CKYC can be outlined in the following steps: 

Step 1: Select a CKYC Service Provider  

Begin by identifying a financial institution or authorised service provider that offers CKYC services. 

Step 2: Gather Required Documents  

Collect the necessary personal information and supporting documents, such as ID proof, address proof, and a photograph. 

Step 3: Submit Information and Documents  

Provide your information and supporting documents either in person at the service provider's office or electronically, depending on their specific procedures. 

Step 4: Verification Process  

The service provider will verify your information and documents to ensure their accuracy and authenticity. 

Step 5: Receive CKYC Number  

After successful verification, you will be issued a unique CKYC number, which can be used to access various financial services in the future. 

Keep in mind that the CKYC process may vary based on your choice of service provider, so it's advisable to check directly with them for specific details and requirements. 

How Does Central KYC Work? 

The Central KYC (CKYC) system streamlines the investment process in India by removing the need to submit KYC details for each new investment repeatedly. Once you complete the CKYC verification, you receive a unique 14-digit identification number that can be used for all future investments. 

The process begins with filling out the online CKYC form, where you'll provide basic information (name, address, contact details) and attach supporting documents, such as proof of address, proof of identity, and photographs. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) then verifies your information and updates your KYC status accordingly. 

Documents Required for Central KYC 

To complete the Central Know Your Customer (CKYC) process, you'll need the following documents: 

1. Proof of Identity (POI): A government-issued photo ID, such as an Aadhaar Card, passport, driving licence, etc. 

1. Proof of Address (POA): Any government-issued document confirming your current address, like an Aadhaar Card, passport, driving licence, or voter ID. 

1. Recent Passport-sized Photographs 

1. PAN Card Details 

1. Bank Account Details (if needed) 

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

How to Check Your Central KYC Status Online 

To check your Central KYC (CKYC) status online, follow these steps: 

1. Step 1: Go to the website of the financial institution where you completed your CKYC or have an account. 

1. Step 2: Navigate to the section labelled 'CKYC', 'Customer Services', or similar. 

1. Step 3: Log in to your account using your user ID and password. 

1. Step 4: Find the option to view your CKYC status, which may be listed as 'CKYC Details', 'CKYC Status', or similar. 

1. Step 5: Select this option to view your CKYC status. 

1. Step 6: Your CKYC status will then be displayed, indicating whether your KYC process is complete. 

Note: The steps may vary for different institutions. If you're unable to locate the option, contact customer service for assistance. 

How is Central KYC Beneficial? 

CKYC is a one-time process that saves time and effort by allowing investors to complete their KYC just once. Its consistency allows the investors to manage all activities administered by the Government of India and various regulators like RBI, IRDA, SEBI, and PFRDA without having to undergo multiple KYC procedures. The benefits of CKYC include: 

1. Streamlined Verification Process: CKYC simplifies KYC by reducing the frequency with which individuals need to submit their information. 

1. Improved Security: By centralising customer data, CKYC enhances the ability to prevent fraudulent activities by detecting them earlier. 

1. Reduced Paperwork: The CKYC eliminates the need for customers to provide multiple copies of their KYC documents to different entities. 

1. Enhanced Customer Experience: With a centralised database, customers no longer face the hassle of repeatedly submitting their information, which is both timesaving and effort-reducing. 

1. Improved Data Management: CKYC facilitates better access and management of customer information for financial institutions, enhancing their overall efficiency. 

Impact on Existing Investors 

Currently, existing investors are not required to undergo the CKYC process; however, this may change in the future. CKYC is a valuable initiative aimed at simplifying the onboarding process for new investors while safeguarding the interests of both customers and financial institutions. This streamlined system has the potential to enhance participation in the financial sector, ultimately benefiting all parties involved. 

How Long is Central KYC Valid? 

With CKYC, you complete the online registration process just once, and it remains valid for life. You can update your CKYC status online whenever necessary. This system simplifies investment processes for both investors and financial institutions, leading to greater market participation. CKYC makes financial transactions easier and more convenient for everyone involved. 

Types of Central KYC Accounts 

There are four types of accounts: 

1. Normal Account: This account is established when you submit any six official documents as proof of identity, such as PAN, Aadhaar, driving license, voter ID, passport, or NREGA job card. 

1. Simplified or Low-risk Account: Individuals who cannot provide any of the six official documents may submit Other Valid Documents (OVDs) such as utility bills, an Aadhaar letter issued by UIDAI, or a job card issued by NREGA and signed by a state government official, as outlined by the RBI. 

1. Small Account: Customers without any official documents can open a small CKYC account by submitting a completed form along with a photograph. These accounts come with restrictions on transactions and limited validity. 

1. OTP-based eKYC Account: This account is created when you submit an Aadhaar-based PDF file downloaded from the UIDAI website and verified using an OTP. 

In addition to CKYC, there is also OKYC. The key difference is that OKYC allows customers to share their details for KYC verification through an offline Aadhaar XML or QR code by visiting UIDAI's website, whereas CKYC is a one-time KYC compliance process for accessing multiple financial services across various institutions. 

Difference Between Normal KYC, eKYC, and Central KYC 

KYC (Know Your Customer) refers to the process of verifying a customer's identity. The distinctions between normal KYC, eKYC, and CKYC are as follows: 

1. Normal KYC: This traditional method requires customers to physically visit a financial institution to provide their personal information and identification documents. 

1. eKYC (Electronic KYC): eKYC is the digital version of the KYC process, allowing customers to submit their information and ID documents electronically via a mobile app or website. 

1. 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 customer identities, significantly reducing the need for customers to submit their information multiple times. 

Comparison of KYC, Central KYC, and eKYC