The Central Know Your Customer Registry is a central repository of KYC records. CKYC numbers are assigned to individuals once their KYC documents are submitted. Therefore, if you want to engage in any financial transaction, such as Mutual Funds, FD Schemes etc., you can submit a CKYC number to a financial institution as an alternative to submitting physical KYC documents. CKYC is an online repository that all financial institutions can access to verify the KYC information of their customers.
When your KYC details have been registered with CKYC, you will receive a 14-digit KYC number, which you can use as a reference whenever you make any financial transactions. You won’t have to present your KYC documents again unless your KYC details have changed.
Overview of CKYC
Central KYC (CKYC) stores KYC records for customers seeking financial services. There was a first introduction of the CKYC to the Union Budget in the 2012-2013 financial year. CKYC is a directive by the Indian Ministry of Finance, which has been in place since 2016. A key goal of the CKYC directive is to create a single platform for customer verification and reduce the hassle around KYC verification. CKYCR stands for Central KYC Records Registry, a database that stores all KYC information about all customers.
Working of Central Know your customer
You will need to go through the CKYC process if you plan to invest in the stock market, mutual funds or FD schemes whose maturity value can be calculated in advance by using fixed deposit interest rate calculator. If you are interested in investing in a fund house, you must fill out a KYC form and show supporting documentation. As a result of receiving these documents, CERSAI will issue you a 14-digit CKYC number to verify your identity. However, the documents will not be required for verification if you wish to invest in another mutual fund house. Instead, a mutual fund house will request you to give your CKYC number. By using CKYC number check on website, you can invest in a simple and stress-free way.
Steps to perform CKYC number check status online
You may be able to perform CKYC number check on financial institution website that offers CKYC number check services. The following is a brief description of the procedure for CKYC number check online
- You can access the CKYC Website by log in into the Portal.
- You will need to enter your PAN card information.
- Enter the security code.
- Once you have completed the above procedures, you can perform CKYC number check and see your CKYC Number.
Different Types of CKYC accounts
Simplified measure account
Depending on the RBI circular, there may be other legally legitimate documents which can be submitted. Therefore, KYC identifiers for these accounts will be preceded by the prefix ‘L’ in the identifier.
OTP-based eKYC account
Aadhaar PDF files from the UIDAI website and a photograph are needed to create this sort of account. There is a possibility that KYC identifiers for these accounts will start with the letter ‘O.’
To open a normal account, you need to submit the following six official documents to prove your identity: a PAN, a Voter ID, an Aadhaar, a passport, a driving license, and your NREGA Job Card.
You can open this type of account by submitting your personal information and a photograph. The KYC identifier of these accounts would begin with the letter ‘S.’
Benefits of CKYC
There are many benefits to using CKYC, from saving time to making investing easier. Here are a few of the benefits that you can get from CKYC:
- It reduces required documentation time and energy by unifying data from all the financial regulators.
- Your CKYC details are accessible to you, making it easy for you to easily update your details in the registry at any time.
- Participates in the control of money laundering activities in the financial sector and other illegal activities
- The authorities have also been able to retrieve the investment data and related details easier than ever before
- It is possible to use CKYC numbers for various financial transactions, including investing in stocks, opening a bank account, mutual fund, and purchasing insurance policies.
The new process of CKYC number check is a blessing in disguise in the modern era, when people all want things to happen instantly. By introducing the Central KYC registration system, transacting with financial institutions has become simpler, quicker and safer. In addition, the new feature allows you to transact with multiple financial entities without repeating the KYC process.
When you open a bank account or invest in mutual funds or stocks, it is necessary to complete a verification process. The verification process cross-checks your identity and registers your information in a database to prevent any misuse of your identity. It also keeps your records in the financial database of an institution. The process of verification is known as the Know Your Customer (KYC) process. A CKYC is a version of the KYC which aims to use one KYC for all types of financial sector services.