Discover Central KYC (CKYC): Streamline Your Business with CKYC APIs for Financial Simplicity, Enhanced Customer Experience, and Efficient Workflows.
CKYC, short for Central Know Your Customer, is a central registry that houses KYC documents of users availing any service from the financial domain.
KYC took root to combat Terror Financing(TF) and weaken any and all efforts of Money Laundering. In the most simple sense, it refers to verifying the background of a user or entity to ensure they are authentic and in existence. It is predominantly used when a relationship between an individual/entity and financial institution begins.
The Government of India introduced CKYC as a one-stop point for all KYC requirements for individuals. Further, CKYC falls under the Central Registry of Securitisation Asset Reconstruction and Security Interest; CERSAI manages the entire CKYC registry and has the power to collect, secure, and safeguard the KYC details of a user digitally. However, unlike KYC Registration Agencies (KRAs), CERSAI doesn’t store in-person KYC data on individual systems. Financial entities like Banks, NBFCs, PFRDA, SEBI regulated entities, AMCs, and the likes directly report to CERSAI.
As of 31st March 2021, the CKYC registry hosts more than 35 crore KYC records. According to prepared by the Registrar General and Census Commissioner of India, more than 50% of India’s population is now 25 years or older.
There are broadly 4 kinds of CKYC accounts. In most cases, a prefix is added to identify the type of account, which are:
An account classification depends on the type of document a user submits for verification. These include PAN Card, Aadhaar Card, Voter ID Card, Driving Licence, Passport. Normal CKYC accounts help users to avail financial offerings like Home Loan, Personal Loan, Credit Card, etc.
A simple KYC registration form along with a photograph grants a user a Small Account. In this case, the prefix identifier 'S' added for identification.
This registration process is entirely online and involves a user submitting their Aadhar card from the UIDAI website along with a photograph. Post this; the account verification happens via the registered mobile number via OTP. Further, OTP-based eKYC Accounts are identified by 'O.' Moreover, OTP-based eKYC Account helps users open Min KYC savings account, add Fixed Deposits, and more!
When a user submits Officially Valid Documents (OVDs) that are allowed as per RBI circular RBI/2015-16/42, and are prefixed by 'L.'
Most businesses, especially the ones operating in the regulated sector, have the mandatory need to verify their identity before onboarding them or transacting with them in any manner. This means that users have to undergo a verification process every time they wish to avail a financial service. Even if they have done this countless times in the past. Ergo, it’s quite a hassle for both the customer and the business. In such a case, an initiative like CKYC comes as a boon.
Eliminate repeated KYC procedures for a user once & for all.
Easy on businesses to fetch user’s data with due consent via an authorized body for risk analysis.
Users can access the CKYC registry and update their details as needed.
Protection against KYC fraud since CKYC doesn't require users to undergo verification multiple times.
For CKYC registration, a user/entity can visit any financial institution that’s regulated by RBI, SEBI, IRDA, to name a few. The user is required to submit documents for identity and address proof such as PAN, Aadhaar Card, Passport, Driving Licence, along with a filled-in CKYC form.
Once verified, the user is allotted a 14-digit number known as the CKYC number tied to the user and forms an ID for them. Using this CKYC number, they can access their details and also update them from time to time. This is then, checked & verified by financial institutions during key.
Utilize CKYC APIs to Accelerate Customer Onboarding by 95%
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CKYC was introduced to ease the KYC process by,
Here are the documents required for CKYC
eKYC
Customers’ identities are verified digitally through the use of a process known as ‘Electronic KYC’ or eKYC. The UIDAI database aids in eKYC identification verification. This is possible after the customer confirms the eKYC request they receive via OTP, offline via XML files, or through the QR code on their Aadhaar card.
CKYC
CKYC is done to assist investors in conducting their KYC only once. Any RBI, IRDA, SEBI, or PFRDA registered company does not require the investor to complete repetitive KYC procedures. It facilitates investment participation and easy client onboarding.
The procedure for checking CKYC status online is outlined below
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