All You Need To Know About Central Know Your Customer (c KYC)
Central Know Your Customer (c KYC) is a centralized depository of KYC records of customers across financial market segments. As per c KYC norms, a customer once KYC-registered with any financial entity, need not enter a KYC norm again.
With uniform KYC norms, the c KYC allows financial markets like banks, NBFCs, mutual funds, etc. to access customer information stored in the central registry.
Who Can Access c KYC Norms?
Launched by Central Registry of Securitization and Asset Reconstruction and Security Interest in India (CERSAI) in July 2016, the c KYC allows inter-usability i.e. usage of common data. Thus, it reduces the burden of verifying the KYC documents every time. A person registered with c KYC can invest in any financial product without again registering for a KYC.
Authorized institutions/notified institutions under the Prevention of Money Laundering Act or rules framed by the Government of India or any Regulator like SEBI, RBI, IRDA, and PFRDA, can access the central KYC information.
The Main Functions of c KYC Program Include:
- Electronically storing, safeguarding, and retrieving the KYC records
- Making records available online to reporting entities
- Updated customer information is disseminated on request to reporting entity
- Reporting entities can avail the c KYC services on payment of prescribed fee.
- If a reporting entity shares the KYC records of a customer, the c KYC processes it for de-duplication and issues a unique KYC identifier of each customer.
- The de-duplication is done on the basis of the demographics.
- Ensures the integrity of the electronic systems. Takes precautions so that the records are not lost, tampered or destroyed.
- Creates backup and prevents unauthorized access to KYC database.
- ID authentication with issuing authorities like Aadhaar/PAN etc.
Documents Required For c KYC Registration
Customers have to ensure to give the right details and documents for KYC registration. Documents like Aadhar card, PAN card, bank account statement, voter ID or Passport are needed for registration. Learn why KYC is important for you.
In conclusion, the c KYC program offers an immense benefit for the customer or investor and the financial institution, by saving a huge time and effort in the process. Unlike before, where an investor had to share documents during every financial investment, c KYC registration is a one time process. Get registered with c KYC through SEBI-registered financial planning services company like ArthaYantra and take the right steps towards securing your financial future.
