{"id":29219,"date":"2020-02-26T18:37:02","date_gmt":"2020-02-26T13:07:02","guid":{"rendered":"https:\/\/enterslice.com\/learning\/?p=29219"},"modified":"2023-07-10T20:58:23","modified_gmt":"2023-07-10T15:28:23","slug":"central-kyc-registry-a-concept-study","status":"publish","type":"post","link":"https:\/\/enterslice.com\/learning\/central-kyc-registry-a-concept-study\/","title":{"rendered":"Central KYC Registry: A Concept Study"},"content":{"rendered":"

The Central KYC (Know\nYour Customer) Registry is a centralized depository of KYC documents of the\ncustomers benefiting from various services of the financial sector. The concept\nof Central KYC was established with the intent to minimize the burden and\nhassle of submitting KYC (Know Your Customer) documents for verification and\ninspection whenever starting a new financial association with a new finance\ncompany.<\/p>\n\n\n\n

The Central KYC Registry in India<\/a> often referred to as the CKYC (Central Know Your Customer) is basically, a centralized depository for maintaining and preserving the customer’s KYC records. Moreover, the Central Registry of Securitization and Asset Reconstruction and Security Interest (CERSAI) is responsible for managing the Central KYC norms.<\/p>\n\n\n\n

In India, the concept of Central KYC is increasingly getting adopted. Moreover, any person who requires the central KYC can approach the financial institutions regulated and administered by the respective Authorities. Such Financial Institutions include the RBI (Reserve Bank of India), SEBI (Security Exchange Board of India), IRDA (Insurance Regulatory and Development Authority) or PFRDA (Pension Fund Regulatory and Development Authority) to get the same done. Further, the KYC requirement can also be fulfilled either with a bank, Mutual Fund Company, the Insurance Company, and a stockbroker.<\/div>\n\n\n\n

The History behind the Concept of Central KYC<\/h2>\n\n\n\n

Section 73 of the Prevention of Money Laundering Act, 2002, authorizes the central government to make rules and regulations in order to prevent the generation of black money. Moreover, to curb the snag like black money, the central government has established the Central Registry of Securitization Asset Reconstruction and Security interest (CERSAI) of India in order to guarantee Single KYC requirement whenever any individual buys or invests in any of the financial products. Further, CERSAI is considered as the supreme body that manages and governs the Central KYC Registry regarding storage, safeguarding, maintenance, and easy access to the customer’s KYC (Know Your Customer) records.<\/p>\n\n\n\n

Features of Central KYC <\/h2>\n\n\n\n

Following listed are the key features pertaining to\nthe concept of Central KYC –<\/p>\n\n\n\n

    \n
  1. Central KYC is a 14-digit number duly linked with the Identity Proof<\/li>\n\n\n\n
  2. Customer’s KYC data is safely maintained and preserved in an Electronic Format<\/li>\n\n\n\n
  3. All the documents submitted are duly checked and verified with the issuer<\/li>\n\n\n\n
  4. All the concerned Financial Institutions are notified after any change in KYC details<\/li>\n\n\n\n
  5. Central KYC assures single KYC requirements for all the financial products<\/li>\n\n\n\n
  6. It is a process of obtaining an individual’s information regarding his or her identity and address<\/li>\n\n\n\n
  7. Central KYC helps in the prevention of Money Laundering<\/li>\n\n\n\n
  8. Central KYC minimizes the issues pertaining to repeated submission of KYC documents<\/li>\n\n\n\n
  9. It helps in KYC search, upload, download, update, etc<\/li>\n\n\n\n
  10. It provides a safe, secure and advanced user authentication mechanism for system access<\/li>\n\n\n\n
  11. Holds regulatory reports to monitor compliance<\/li>\n<\/ol>\n\n\n\n

    Benefits\nof Central KYC Registry<\/h2>\n\n\n\n

    Following are the benefits annexed with the concept of\nKYC Registry – <\/p>\n\n\n\n

      \n
    1. CKYC registry\nfacilitates financial institutions to verify the documents at ease.<\/li>\n\n\n\n
    2. Investors are not\nrequired to submit KYC documents every time before starting a new\nfinancial association with a new financial institution.<\/li>\n\n\n\n
    3. Investors have\naccess to update their details and particulars in the CKYC (Central Know Your\nCustomer) Registry.<\/li>\n\n\n\n
    4. An Individual can\nuse the allotted CKYC number for buying or investing in various financial\ninstruments such as an insurance policy, stock markets or even for investing in\nmutual funds.<\/li>\n<\/ol>\n\n\n\n
      \n\n

      Central KYC Registry in India<\/h2>\n\n

      KYC Registration is Mandatory for NBFC<\/a> <\/strong><\/span><\/p>\n\nRegister Now<\/a>\n\n<\/div>\n\n\n\n

      Types of Central KYC Accounts<\/h2>\n\n\n\n

      In order to buy or invest\nin any financial product or services, there are four types of accounts available\nin the KYC form. Following listed are the types of Central KYC Accounts – <\/p>\n\n\n\n

      Normal Account<\/strong> – A KYC account will be considered as a normal account when following listed official documents are submitted as proof of identity <\/p>\n\n\n\n

        \n
      1. PAN Card <\/li>\n\n\n\n
      2. Aadhaar Card<\/li>\n\n\n\n
      3. Voter ID<\/li>\n\n\n\n
      4. Driving License<\/li>\n\n\n\n
      5. Passport<\/li>\n\n\n\n
      6. NREGA Job Card.<\/li>\n<\/ol>\n\n\n\n

        Simplified KYC Account<\/strong> – If an individual does not submit any of the above-mentioned six documents, then the concerned account will be treated as the simplified KYC account. Further, these types of customers can comply with the Central KYC by just submitting any of the following listed documents –<\/p>\n\n\n\n

          \n
        1. Identity proof in the form of a Passport-sized photograph issued either by the central or state department<\/li>\n\n\n\n
        2. A copy of either bank count statement or the post office saving account statement<\/li>\n\n\n\n
        3. Copy of the utility bills in the form of the electricity bill, water tax receipt, piped gas connection, etc. But it is significant to note that the bill must not be older than two months<\/li>\n\n\n\n
        4. Duly attested passport-sized photograph by the gazetted officer  <\/li>\n<\/ol>\n\n\n\n

          Small Account<\/strong> – If an individual does not submit any type of valid and accepted documents, and then his or her account will be considered as a small KYC account. Further, these types of customers can comply with Central KYC by just submitting a self-attested application together with a passport size photograph. <\/p>\n\n\n\n

          Moreover, this type of KYC account is valid for a\nperiod of twelve months. After the completion of 12 months, the respective\nperson required to submit a document which shows that the concerned individual\nhas applied for any one of the six above-mentioned documents. But, there are\nsome restrictions annexed with this type of account namely –<\/p>\n\n\n\n