KYC – Know Your Customer

CKYC Stands for “Centralized Know Your Customer”.

What is commencement/effective date of CKYC.
CKYC will be effective from 1 February, 2017.

What is CKYC?

CKYC refers to Centralized KYC (Know Your Customer). The main objective is to have a platform which facilitates investors to complete their KYC only once before interacting with various entities across the financial services sector. Once the CKYC is complete for an Investor, he / she is allotted a 14 digit unique KIN (KYC Identification Number) which needs to be quoted by the investor while doing any transaction.

Who is acting as CKYCR? 

Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) is acting as Central KYC Registry (CKYCR). CERSAI is a central online security interest registry of India authorized by the Government of India to act as and to perform the functions of the Central KYC Records Registry under the PMLA (Prevention of Money-Laundering) rules 2005, including receiving, storing, safeguarding and Retrieving the KYC records in the digital form for a client. CERSAI will act as central repository of KYC records of investors in the financial services sector with uniform KYC norms.

Who needs to comply with the CKYC procedure? 

Currently CKYC is applicable to Individuals only (Resident Individuals & Non-Resident Indian). Any individual customer who has never done KYC withKYC Registration Agency (KRA) and whose KYC is not registered in the KRA as well as CKYC system is required to complete the CKYC process. Existing investors who are registered or verified in the KRA system can continue making investments without any additional documentation. However, for any modification to their existing records, they need to fill up the CKYC form.

How CKYC is different from existing KYC in terms ofinformation? 

CKYC requires additional information (for e.g. – investor’s maiden name, mother’s name, FATCA information, etc.) to be submitted to CERSAI for completion of the CKYC formalities of an investor. Date of Birth is a mandatory information under CKYC. All required documentation including proof of identity and proof of address are mentioned in the CKYC form.

Whether PAN and In Person Verification (IPV) is required for CKYC in Mutual Funds? 


How will I be intimated my CKYC KIN? 

KIN is being allotted by CERSAI to investors whose CKYC application is found to be valid. An SMS / email will be sent by CERSAI to the registered mobile number/email address of the investor as soon as the KIN is generated at their end. Since CERSAI will not be sending any physical intimation, applicants should ideally provide their mobile number and/or email ID in the CKYC application form.

What is KYC process to be followed for non-individual customers? 

For non-Individuals, the existing KYC template shall continue to be used and uploaded into KRAs, as governed by prevailing SEBI and AMFI guidelines.

KYC Stands for “Know Your Customer”.

Know your customer (KYC) policy is an important step developed globally to prevent financial fraud, money laundering and terrorist financing.

KYC is a regulatory and legal requirement by Reserve Bank of India initiative for Customer Identification Procedures, Monitoring of Transactions and Risk management & is backed by required documents verified for identification.

KYC has to be followed by every financial institute in every financial transactions while dealing with customers. In situations like opening an account in a bank, applying for a credit card, business or home loan, Opening a locker facility, investing in mutual fund, opening a demat & trading account

Banks may necessarily obtain additional information from existing customers based on the conduct of the account & furnish the KYC Process as per the KYC policy from time to time.

Collection & analysis of basic identity information ” Customer Identification Program ” or CIP. Name matching against lists of known parties for the risk in terms of propensity to commit money laundering, terrorist finance, or identity theft.

Monitoring of customer’s transnational behavior against their expected behavior and recorded profile.

Change in legal name and correct permanent address, the individual’s will have to provide the original document for verification and submit a copy for the Bank’s record.

• Identity Proof(any one of the following)

1). Passport

2). PAN Card.

3). Voter’s Identity Card.

4). Driving License.

5). Aadhar Card.

• Address Proof(any one of the following)

1). Utility bill : BSNL Landline Telephone Bill or Electricity Bill.

2). Bank account statement along with verification by the Banker.

3). Ration card.

4). Letter from employer. (subject to satisfaction of the bank)

Documents Required For KYC For Accounts of Companies / Partnership Firms / Trusts & Foundation, There are different set of documentation and information required.

Account Holders may be requested to furnish their recent passport size colored photograph along with the signed KYC submission format on the Bank’s request.

It is also important to note that there is a requirement for the periodic updating of KYC Information as and when called for by the Bank.

If the bank is unable to apply appropriate KYC measures due to non-furnishing of information or non-cooperation by the customer, the bank has the right to consider closing the account or terminating the banking relationship after issuing due notice to the customer explaining the reasons for taking such a decision.