With the growing fraudulence in the financial sector, and to trace any suspicious behavior it has become very important to keep proper records of customer. CKYC norms were introduced to curb the illegal activity that ruins the financial sector. This helps in knowing the customer better. This further helps in keeping the customer information unique and secured.
KYC, extended by CKYC (Central Know Your Customer). The earlier KYC norms had a separate KYC format for bank to bank. However, with the introduction of CKYC, the customer need not go through the KYC process again and again with any other institution and format are unique set by CKYC registry.
CKYC is the abbreviation for Central Know Your Customer. It is a centralised repository that stores or saves all the personal details of the customer.This helps to bring all the KYC processes on a single platform.
The Central Registry of Securitisation and Asset Reconstruction and Securities Interest of India (CERSAI) manage CKYC Registry.
The following are the features of CKYC :
How Does CKYC Work?
It has now become mandatory to complete central KYC while opening bank account. This helps in knowing the customer better and further securing the banking product.. This further helps in curbing any fraud and suspicious behavior in the financial sector.
Prior to the Bank, the customer has to fill the KYC form. The CKYC form needs to be filled and submitted with related documents. CERSAI further verifies the KYC documents
The KYC documents
verified by CERSAI is stored digitally in one server. The customer is allotted
a 14 digit number which is linked with his ID proof. This number will be the
KYC verified number.
Bank can request
CERSAI to make available the customer’s documents by furnishing the CKYC
number. The data so stored is accessible to all authorized financial entities.
The bank can use the data as required.
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For simplified understanding of CKYC
