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You must be already familiar with the term KYC or Know Your Customer. Being KYC compliant has been necessary whenever requesting a financial service. You must adhere to KYC when opening bank accounts or registering on a UPI application.
Being KYC compliant is mandatory for all financial services, but the process can be somewhat complicated. It primarily involves producing the necessary documents concerning your address and identity. Nevertheless, the introduction of cKYC has made this process hassle-free and less tiresome. cKYC registration is beneficial for all individuals and financial organisations. It has a major role in lessening the hassle undergoing different KYC transactions. You no longer must go through the complications of KYC verification during each financial interaction. It makes the entire process smoother and quicker.
Read on to learn more about what is CKYC, its features, and its benefits.
What is Central KYC (CKYC)?
You can learn here what is cKYC. The government of India initiated Central Know Your Customer or cKYC to streamline the KYC process for financial service providers and investors. It offers a repository of centralised KYC. Here, customers may submit the required documents once they avail themselves of services from different financial institutions. They are not necessary to repeat the same KYC procedure. You must fill out the cKYC form accurately and completely to register with the cKYC successfully.
This form will collect all your relevant data like PAN number, personal details, bank account details, address proof, etc. Verification of each customer’s records against the existing documents after submitting them to the cKYC repository. Then, a fourteen-digit Aadhaar-based identification number. It will create a centralised information database for customers that all the financial institution can access.
How Does it Work?
Should you be considering investing, you must go through the CKYC procedure. Any organisation you contact to invest in will first ask you to do your KYC and provide the necessary paperwork. After receiving these papers, CERSAI will assign you a special 14-digit KYC number.
You won’t need to go through the KYC procedure again if you want to invest in another institution once your cKYC number check has been generated. To make investing hassle-free for you, that institution will submit your KYC number and ask CERSAI to provide your documentation.
Features of CKYC
- Simplified KYC Process: Customers just need to go through the KYC procedure once when using Central KYC. The validated data is subsequently accessible to several financial institutions, eliminating the need for KYC papers to be provided on a regular basis.
- Universal KYC Identification: A unique KYC Identifier (KIN), which is a uniform identify across different financial institutions, is given to each consumer. This guarantees precision and consistency in consumer identification.
- Centralized Storage: By keeping a centralised client information database, central KYC does away with the need for paper records and physical storage. When needed, it enables the efficient and safe recovery of data.
- Aadhaar Integration: India’s biometric identity system, Aadhaar, is connected with Central KYC. Since Aadhaar serves as the primary source for client identification, the procedure is more dependable and swifter.
- Real-time Updates: Financial institutions are able to ensure the accuracy and currency of information by updating client facts in real-time. This strengthens consumer protection and lessens the likelihood of fraudulent activity.
Benefits of CKYC
CKYC offers several advantages, including time savings and simplified investing. A few benefits of CKYC are as follows:
- Since it aggregates data from all financial regulators and eliminates the need for repetitive paperwork, it saves time and energy.
- You may easily change your data in the CKYC registry at any moment, thanks to your access to your cKYC registration details.
- Aids in the prevention of money laundering and other illicit financial sector activity.
- The authorities now have simpler access to investment data and related information.
- Several financial operations, including stock market investment, mutual fund enrollment, bank account opening, insurance policy purchase, and more, may be completed using the same CKYC number check.
Types of CKYC Accounts
Low-risk clients can create an account more efficiently by using the Central KYC Registry (CKYC), which allows them to use a single KYC form that all banks and CKYC-registered organisations accept.
A CKYC account that is established after a person fills out a KYC form is called a Normal Account. This kind of account will be connected to the PAN card, Aadhar card, and other necessary paperwork.
The most basic kind of CKYC account is called a Small Account. It enables people to open single accounts without undergoing the KYC process at several financial institutions.
OTP-based eKYC Account
A particular kind of CKYC account called an OTP-based eKYC account asks users to confirm their identification with a one-time password (OTP). This OTP is produced once the applicant has uploaded the necessary paperwork and information online.
Documents Required For Registration
For cKYC registration, you must submit these documents:
- cKYC form
- Address and Identity Proof
- PAN card
- Recent passport-size photograph
Upon successful cKYC registration, an applicant will receive a fourteen-digit KYC Identifier Number (KIN). Once the KIN is created, CERSAI will send an email/SMS to the applicant’s registered mobile phone.
What is the Process of CKYC?
In India, the government now requires the completion of KYC before obtaining financial services. The cKYC registration only has to be completed once in order to get financial services.
The following is how to get cKYC number:
- Prior to investing with a fund firm, a consumer must fill out a Know Your consumer (KYC) form. After that, it is forwarded to CERSAI for validation.
- After verifying that all CKYC regulations are followed, CERSAI securely stores KYC papers on a single server.
- After completing cKYC registration successfully, customers get an email and SMS with their 14-digit KYC Identification Number (KIN). KIN and the customer’s ID proof are connected.
- The user won’t need to submit KYC documents again because they may use KIN to finish KYC with any other financial institution after that.
- Businesses can complete their KYC verification by extracting customers’ documentation from CERSAI using the CKYC number check.
In India, CKYC is a valuable and significant tool for controlling financial activities. It makes it easier to confirm clients’ identities and keeps track of and updates their information, lowering fraud and money laundering incidents. Therefore, firms may improve their customer experience, compliance, and transparency by implementing and adhering to the cKYC certificate download.
Organisations may guarantee that their services are safe, dependable, and comply with laws by adhering to these criteria.
Visit the official Central KYC Registry Website and follow the instructions for the cKYC certificate download.
Yes, registering a cKYC number check is a completely safe process as it will store your details electronically in a safe and reliable format.
Yes, in order to conduct some financial operations, such as establishing a bank account, purchasing mutual funds, purchasing insurance, or taking out loans beyond a particular amount, central KYC is required. It guarantees adherence to legal specifications and aids in preventing fraud and money laundering.
You can look for how to get cKYC number on the official website. Aadhaar, PAN cards, and other pertinent identity papers must be submitted to a financial institution that is a KYC registration agent in order to enrol in Central KYC. After confirming your documentation, the organisation will create a unique KYC Identifier (KIN).
KYC is the conventional manual procedure that uses tangible documentation to confirm a customer’s identification; eKYC is the digital version of KYC that enables remote verification. In India, CKYC is a single repository that facilitates interoperability between financial institutions and standardises the KYC procedure.