I am sure you must have heard about the word CKYC so many times since last 2 years. If you are first time investor and looking to invest in mutual funds or want to open Saving account in a bank, you need to go through with KYC process.
It is a process under which a financial institution or an intermediary collects certain data and documents to establish the identity of a client.
So far, you had to do multiple Kyc for every financial institution. If you open an account in the bank, or to invest in a mutual fund, or to insurance policy, for all of these you had been going through with the process of kyc every time.
Too much paperwork, right?
To reduce this tedious KYC process, the government has taken initiative to setup CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest of India) Government authorized body to function as the Central KYC Registry (CKYCR).
The objective of CKYCR is to reduce the burden of producing KYC documents and getting those verified every time when the investor deals with a financial entity for the first time. From 1st Feb 2017, new investors in a mutual fund will have to do cKYC (Central Know Your Customer), before investing. central kyc will replace the earlier KYC (Know your customer) procedure.
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What is Ckyc and its process
It is the process to collect the standardized documents for the customer that will be managed by administrative registry i.e. CERSAI.This entity is responsible for keeping the data records for each KYC that is processed. This centralized registry ensures that norms for KYC are standardized across the financial sector in India.
- It also ensures that inter-usability of KYC records and data making sure that the consumer does not have to do KYC each time when opening a financial relationship with the institution.
- To be KYC compliant you need to fill the Central KYC(cKYC) form. Along with the correctly filled form, the customer has to submit a self-attested copy of proof of identity (PAN card, etc) and proof of address along with this, a scanned photo & signature also needs to be submitted.
- There are some new fields in the cKYC form such as the name of the applicant’s mother which was not there in earlier KYC forms. After opening a KYC account or completing cKYC, you will get a 14-digit KYC identification number (KIN) which is unique to every individual.
So, you just have to show this number every time for a new investment or opening a new account in any financial entity. The number will have centrally stored data which can be assessed by any financial entity and will save your and bank or AMC time for KYC process all over again.
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How Central Kyc Registry will help to Consumers?
Once the process streamlined in to full scale of operation, a single KYC will be enough to change the entire spectrum of financial services. Customer will be provided unique ckyc identifier number, which can be quoted every time they wish to buy any financial product.
A Easier kyc documentation process will ease out the process of financial inclusion and will spread new investment environment among the Masses.
Let me explain you this with an Example
You visit the branch to open an account and submit your Kyc documents (Valid Photo id proof and address proof) to bank, now bank will send these documents to CERSAI and Unique Central kyc identifier number will be provided to you. If you want to open an alternate account with another bank, you just need to quote the same identifier number to them. They will directly fetch your KYC data from the CERSAI. The same process will be follwed while opening Demat account, buying insurance policy or Mutual funds, irrespective the fact these all product come under the ambit of different financial regulator. so, all you have to submit your KYC documents once and they will be syncd with all your investments without any hassle.
Documents Required With cKYC FORM
One needs to submit following set of documents while submitting a Central KYC form:
- Correctly filled and signed cKYC form
- A self-attested copy of Proof of Identity
- A self-attested copy of Proof of Residence
- One photograph
Ckyc Form Download
How Will You Check Kyc status online ? Ckyc identifier
Once you submit your form with all the required documents to a financial institution, they will upload your records with central cKYC platform.If all documents and details are in place, your form will be processed and 14-digit KIN No. will be issued to you.
This process may generally take a 3-5 business day. Karvy has recently launched a KYC and cKYC status checking platform, you can now verify your status from Karvy platform, even you will be able to get the details of your central kyc id.
You can check your CKYC number from CVL or Karvy. Here is the process to find out.
- Visit Karvy website
- Punch in your PAN number and Captcha
- You will see your CKYC number as shown in the image below