With the growing number of scams in the form of bogus transactions and the movement of black money, the government has become quite strict in monitoring financial transactions. You must ensure detailed KYC submission whenever you open a new account or are involved in large monetary transactions. However, providing KYC documents for starting even a small account with a financial institution is not always convenient. That is where the role of CKYC kicks in. Let’s discuss what is CKYC in detail.

What is the CKYC number?

CKYC stands for Central Know Your Customer. The CKYC is a 14-digit unique identifier assigned to you after completing the CKYC process. It is linked to your ID and stored electronically. The primary purpose of this 14-digit CKYC number is to eliminate the hassle of submitting a bundle of documents when starting a relationship with new financial institutions.

What is the central KYC registry?

The central KYC registry is a centralised repository that stores the KYC of all customers across the financial sector, whether it's a mutual fund house, bank, or stock market brokerage firm.

The Central Government introduced CKYC after exercising its power outlined under the Prevention of Money Laundering Act, 2002, Section 73. According to this provision, the government has the power to draft any new policy to curb black money. The CKYC registry is maintained by the Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI).

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Now that you know the central KYC registry’s meaning, let’s look at its types.

Types of CKYC accounts

CKYC accounts come in four types:

1. Normal account

You can open this account by submitting one of the following documents:

- National Rural Employment Guarantee Act (NREGA) Job Card

- Passport

- Permanent Account Number (PAN) Card

- Aadhar Card

- Driving License

- Voter ID

2. Simplified measures account

You can open this account by furnishing other Officially Valid Documents (OVDs). The list of accepted documents is outlined in the Reserve Bank of India (RBI) circular RBI/2015-16/42.

A prefix denoted by ‘L’ serves as the KYC identifier to distinguish this account from others.

3. Small account

You can open this account by providing basic details and a passport-size photograph. This account is distinguished by the KYC identifier prefix ‘S.’

4. OTP-based eKYC account

To open this account, you must first visit the UIDAI website and download the Aadhar in PDF format by providing the OTP you received on your registered mobile number. Next, furnish the Aadhar and a photograph to the concerned authority to open your account.

The prefix 'O' denotes this type of account as a KYC identifier.

Central KYC registry benefits

• CKYC standardises the KYC process across all financial institutions. If you complete this process, you do not need to visit different financial institutions whenever you open an account with them for the first time.

• The centralised system ensures proper security. It makes it easier for financial institutions to detect fraudulent or suspicious transactions associated with a particular account and minimises identity theft risk.

• If your address, surname after marriage, or contact number change, you only need to inform one of the financial institutions you are dealing with. As soon as this institution updates the details in the CKYC, they will also be updated in other connected institutions' systems. This feature ensures up-to-date records and makes it easier for institutions to settle payments.

• The central repository enables interoperability among different financial entities, allowing quick and secure information access.

Step guide to completing the CKYC process

Consider the following steps to complete the CKYC process.

• Step 1: Locate banks, mutual funds, or insurance companies registered with CKYC.

• Step 2: Provide identity and address proof such as PAN card, Aadhaar card, and proof of address.

• Step 3: Fill out the CKYC form with all the required personal details.

• Step 4: The financial institution will verify your documents with the issuing authorities. Some institutions may require biometric verification for added security.

• Step 5: You will be issued a unique 14-digit CKYC number upon successful verification.

How can you check the CKYC number?

You can find the CKYC number  either through Central Depository Services Ltd (CDSL) or the Karvy website. Here is how to check the details through CDSL.

• Step 1: Navigate to the official CDSL website

• Step 2: Locate the e-KYC or CKYC-related services section.

• Step 3: Enter your PAN number in the designated field.

• Step 4: Input the CAPTCHA/security code as displayed on the screen.

• Step 5: Submit the details to proceed with the verification. You can now view your CKYC number and related details on the screen.

• Step 6: Review the information for accuracy. If you need a copy for your records, download your CKYC report.

Conclusion

The government introduced the CKYC to streamline the verification process in financial transactions. It consolidates KYC details across various institutions, simplifies account opening procedures, and enhances security measures.

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