What is CKYC (Central KYC)? How does CKYC work?

CKYC (Central Know Your Customer) is a centralized system introduced by the Indian government to simplify the KYC process across financial institutions. It stores customer details in a single, secure registry, eliminating the need to submit KYC documents repeatedly for different services like mutual funds, insurance, or bank accounts. This makes onboarding faster, more efficient, and consistent across the financial ecosystem.

Read on to know what is CKYC, how it works, its benefits and why it’s becoming essential in India’s financial ecosystem. This guide covers everything you need to know about CKYC.

What is CKYC?

CKYC full form stands for Central Know Your Customer. CKYC was launched in 2016 under the Prevention of Money Laundering Act, 2002, and is managed by the Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI). Before CKYC, financial institutions like banks, mutual fund houses and insurance companies had their own KYC processes, leading to duplication and inefficiencies.

💡 Did You Know? Experts emphasise that a centralised CKYC system brings dual benefits. Customers experience quicker transactions and less paperwork. Meanwhile, institutions achieve greater efficiency and stronger compliance.

So, what is CKYC number? It’s a unique identifier provided to customers. Financial institutions can use this CKYC number to easily access verified information. It’s a smooth process that reduces paperwork while ensuring consistency and accuracy in customer records across various financial institutions.

Features of CKYC: How is it Beneficial?

The CKYC system is designed to address the complexities of managing customer identity with a forward-thinking approach. Its features are beneficial to both individuals and institutions alike.

1. Unified Identification System

CKYC is a 14-digit unique identifier linked to a customer’s ID proof. This eliminates the need for multiple submissions of the same documents to different institutions. Your identity can be easily verified across banks, insurance providers, mutual funds and other financial services with a single CKYC number. Once your KYC is verified, it’s done no more resubmitting paperwork.

2. Centralised and Digital Repository

Gone are the days of bulky paper records and repetitive submissions. How is CKYC different? It stores customer details in a centralised, secure database, accessible only to authorised entities. This digital-first approach simplifies data management and reduces dependency on physical documentation.

3. Enhanced Verification Standards

One of the biggest benefits of CKYC is that the documents submitted through CKYC are subject to rigorous inspection and validation. Financial institutions ensure that all data meets established standards before being entered into the system. This creates a reliable and trustworthy source of customer information.

4. Real-Time Updates Across Institutions

It ensures that any updates to customer details, such as a change in address or phone number, are automatically reflected across all linked financial entities. This reduces redundancy and helps maintain accurate, up-to-date records across the network.

5. Interoperability for Easy Access

The system allows financial institutions to access KYC data through a unified platform. These institutions include banks, insurers, mutual fund companies, etc. This interoperability saves time for customers while streamlining processes for service providers.

6. Commitment to Data Security

The CKYC system ensures your details are stored with strict encryption and access controls. Only authorised financial institutions can access your verified CKYC record.

Which Institutions Use CKYC?

The Central KYC Record Registry (CKYCRR) has changed the way customer data is handled across India’s financial sector. So, what is Central KYC registry or what is CKYCRR? Simply put, it’s a centralised system that stores KYC details in a secure, digital format, accessible by various institutions.

CKYC isn’t just a tool for banks. It’s used by a wide range of financial entities regulated by India’s major financial authorities, including:

• Commercial and cooperative banks regulated by the Reserve Bank of India (RBI)
• Mutual fund houses overseen by the Securities and Exchange Board of India (SEBI)
• Insurance companies regulated by the Insurance Regulatory and Development Authority of India (IRDAI)
• Non-Banking Financial Companies (NBFCs)

🌟 Wow Fact As of 30th September 2024, it hosts an impressive 94 crore KYC records. This growing number reflects the smooth access and ease CKYCRR provides to institutions and customers alike. It’s now a powerful asset in India’s financial ecosystem.

How does CKYC work?

1.  One-Time KYC Submission: When you first invest or open an account, you submit your KYC documents (ID proof, address proof, photo, etc.) to a financial institution.
2. Data Upload to CKYC Registry: The institution uploads your details to the CKYC Registry, managed by the Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI).
3.  CKYC Number Issued: You are assigned a unique 14-digit CKYC number, which links to your KYC records in the central database.
4.  Use Across Institutions: With this CKYC number, you don’t need to repeat the KYC process for other banks, mutual funds, or insurance providers. They can access your verified details directly from the registry.

This process ensures faster onboarding, reduces duplication, and enhances compliance

How to Complete CKYC: A Step-by-Step Guide

Completing the CKYC process is simple and designed to make your financial transactions easier and quicker. If you’re wondering how to complete CKYC, and what is CKYC registration, here’s a detailed guide that will walk you through each step of the process.

Step 1: Find a CKYC Service Provider

The first step in completing your CKYC is finding an authorised institution that offers CKYC registration. This can include banks, mutual fund houses, insurance companies or other recognised financial institutions. Many of these institutions provide CKYC registration services at their branches or even online.

In fact, if you need to know how to get CKYC number online, some financial entities offer the entire registration process online. You can complete it from the comfort of your home or office.

⚠️ Important Note It’s important to ensure the service provider is authorised to collect and process your KYC data under the CKYCRR, which is managed by the Financial Intelligence Unit (FIU-India) and regulated by major financial authorities like the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), and Insurance Regulatory and Development Authority of India (IRDAI).

Step 2: Gather the Required Documents

Once you’ve chosen your CKYC service provider, the next step is to gather the necessary documents for the registration. If you’re wondering what is CKYC documents or what does CKYC details contain, here’s what you need to know:

• Proof of Identity: A government issued document such as your Aadhaar card, Passport, Voter ID or Driver’s License.
• Proof of Address: This can be your Aadhaar card (if it contains your address), utility bills (electricity, water), bank statements or lease agreements that clearly show your current address.
• Photograph: A recent passport sized photograph for the record.

Important Note Before you head to the institution, make sure you have these documents in hand and in good condition. For some service providers, you may need to submit the original documents for verification, while others may accept scanned copies for online submission.

Step 3: Submit Information and Documents

Once you have all your documents ready, you will need to fill out a KYC form provided by the institution. This form typically asks for basic details such as:

• Your name
• Date of birth
• Gender
• Contact details
• Other personal information

Along with this, you will need to submit the necessary documents, either in person or online. Many institutions offer the convenience of submitting your KYC documents online through their websites or mobile applications. You can easily upload scanned copies of your documents, along with your personal details.

Pro Tip If you’re doing this in person, simply hand over the original documents and a photocopy for verification. The institution will then cross-check the details to ensure everything matches.

Step 4: Verification Process

Once the documents are submitted, the financial institution will begin the verification process. They will check the authenticity of the documents and ensure all details are accurate. This may include validating your identification through various government databases (such as the Aadhaar database for Aadhaar-linked verification). The verification process is designed to be thorough, ensuring that only legitimate information is recorded in the CKYCRR.

Most service providers strive to complete this verification process quickly. In many cases, it can take as little as a few minutes if done online or within a few business days if completed at a physical branch.

Step 5: Receive Your CKYC Number

Once your KYC documents are verified and approved, a 14-digit CKYC number is generated. This number becomes your CKYC ID and is stored in the central KYC registry for future use across banks, mutual funds, and insurance services.

The CKYC number helps eliminate the need to submit your KYC documents repeatedly every time you apply for a financial product or service.

Important Note: How to Check CKYC?  For customers who complete their CKYC online, the CKYC number may be sent directly to your registered email or mobile number once your KYC details are processed. For in-person registrations, the CKYC number will be shared with you through the institution once everything is finalised.

Let us also explain how to check CKYC number online. To check your CKYC number online, you can visit the web portal of any financial institution that offers CKYC checking facility. Either create an account or if you already have an account, login to your account and enter your PAN. Next, enter either the security code or captcha code. Once you do that, your CKYC number will be displayed.

How to Download CKYC Certificate Online?

To download CKYC certificate online, go to the web portal https://www.ckycindia.in/kyc/getkyccard. Verify your mobile number and enter the captcha. That’s it. The link to download your CKYC card will be sent by SMS to your mobile number registered with CKYC.

How Long is CKYC Valid?

Once you’ve completed the CKYC process and received your unique 14-digit number, it’s valid for life. There’s no expiration date on the CKYC itself. Your CKYC number will be your single point of reference. However, there are instances when you may need to update your CKYC details. For example,

Important Note: If you change your address, renew or replace your identification documents, like your PAN card or passport, notify the relevant institution. Update your CKYC record. This will ensure that the information stored in the central registry remains accurate and compliant with regulatory standards..

Checking Your CKYC Status Online

Wondering how to verify CKYC number and details? Here’s how:

1. Visit the CKYC portal or your financial institution’s website.
2. Enter your CKYC number or registered mobile number.
3. Verify your identity with an OTP (One-Time Password).
4. View your CKYC status and details instantly.

Types of CKYC Accounts

CKYC offers flexibility with different account types based on customer needs

1. Normal Account

The Normal Account is for individuals who possess standard identification documents like Aadhaar or PAN cards. With this account, you can easily complete the CKYC process and access a wide range of financial services. It’s the go-to option for most customers who have all the required documents in place.

2. Simplified Account

For those who may not have the traditional ID documents but still want to participate in basic financial activities, the Simplified Account comes in handy. This account allows people with limited documentation to engage in financial transactions. However, it might have restrictions based on the volume and type of transactions. It’s a practical option for individuals who are new to formal banking or those who face difficulties in obtaining standard ID proofs.

3. Small Account

This account is designed for individuals without formal identification documents. The Small Account helps make financial services more accessible to those in rural or underserved areas. It’s suitable for smaller-scale or infrequent financial activity. It’s a step towards financial inclusion, ensuring that even those without formal IDs can participate in the financial ecosystem.

4. OTP-Based eKYC Account

The OTP-Based eKYC Account is a quick and convenient way to complete the KYC process. It uses Aadhaar-linked One-Time Passwords (OTPs) for authentication, eliminating the need for physical paperwork. This type of account allows for instant verification and is ideal for those looking for a faster, better KYC process. It’s becoming increasingly popular for tech-savvy individuals who prefer digital verification methods.

KYC vs eKYC vs CKYC

Is CKYC Mandatory?

CKYC is mandatory for certain financial activities, such as:

• Opening bank accounts
• Investing in mutual funds
• Purchasing insurance policies

Conclusion

CKYC is a major step forward in India’s mission to simplify and unify customer verification across financial services. By offering a centralized, digital repository of KYC data, CKYC removes the hassles of repeated documentation and enables faster, more secure access to financial products like mutual funds, insurance, and bank accounts. Whether you’re a first-time investor or a seasoned account holder, completing your CKYC ensures smoother transactions, better compliance, and a more efficient financial journey. In a world where digital convenience is key, CKYC is not just useful-it’s essential.