CKYC stands for Central KYC, which is a centralized repository that allows the customer’s personal information to be centralized. Earlier, when a customer went to a financial institution to buy a product, KYC (Know Your Customer) was required to do it at different times for each product, and each institution (company).
Central KYC status is a regulated process, requiring specific details, documents, and subsequent verification. Ideally, this KYC should be suitable for all financial institutions in India if done correctly once. In financial institutions such as banks, mutual funds, insurance firms, NBFCs, etc., CKYC or central KYC can be used.
The CKYC program was announced by the Government of India in the Union Budget 2012-13 and went live in July 2016. Central KYC (cKYC) is being managed by The Central Registration of Securitization and Asset Reconstruction and Security Interest in India (CERSAI). So, with cKYC, once you have KYC, there is no need to do it again.
What is Central KYC Registry?
The CKYC registry is a consolidated collection of financial services information for consumers. The Central KYC or cKYC register is CERSAI. This agency is responsible for maintaining track of data for each KYC. This centralized registry ensures the standardization of KYC norms in India’s financial sector. It also ensures that the inter-applicability of KYC records and data ensures that the consumer does not have to perform KYC whenever opening a financial relationship with an entity.
How to get your central KYC done?
To carry out your central KYC process, you can contact any mutual fund distributor (provided that SEBI regulates them), visit the office of the mutual fund house, or contact the registrar as well. Photocopy of required documents will have to be attached, along with a correctly filled cKYC form. Then the forms and documents must be physically verified and attested. For this, an in-person verification (IPV) should be done.
cKYC Status Check Online
Currently, no resources are available online for checking Central KYC status. Some KRAs such as Karvy KRA have added a column in the status section of KYC, but it is currently zero, we expect it to start displaying Central KYC status in due time.
If you are given a 14-digit KYC Identification Number (KIN) after submitting your documents, it means that your CKYC application has been approved, and you are in compliance with CKYC. CERSAI allot KIN to an eligible applicant within 4-5 working days.
When KYC identification number or KIN is created for your KYC account, an SMS will be sent to your registered mobile number along with an email. Since CERSAI does not provide any physical confirmation of successful registration, you will need to include your mobile number on your email id and cKYC form.
This can be rejected in the event of any discrepancy found in your application. In these cases, CERSAI does not give you any information. The financial entity that processes your central KYC application will be made aware of the situation, and you can contact the entity for any questions and solutions.