Whether you need to open a bank account or take out a personal loan, you always need to submit ID proofs and other significant documents for address verification and more. But we all get tired of doing the same thing again and again, right? That’s why the government has introduced CKYC or Central Know Your Customer. With this, you only need to submit your documents once, and the system will save your KYC (Know Your Customer) details, so that other banks and financial companies can access them.
Let’s learn in detail what CKYC is, how it works, its benefits and how to get your CKYC done easily. Read on!
What is CKYC?
CKYC, as mentioned, stands for Central Know Your Customer and is a government system that has been introduced to make your financial life easier. Earlier, if you wanted to open a bank account, apply for a loan, or even start a mutual fund investment, you had to go through the KYC process each time. But with CKYC, you do not need to fill out forms and give your documents multiple times.
Now, you only need to do your KYC once. After that, your KYC details would be stored in a secure central system managed by CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest). This one-time KYC then would be accepted by all banks, NBFCs, mutual fund companies and insurance providers.
How Does CKYC Work?
Here’s how the central KYC registration system works:
Step 1: You go to a bank or financial service provider for the first time.
Step 2: They ask you to fill in the KYC form and submit documents.
Step 3: Your details and documents are then sent to CERSAI.
Step 4: CERSAI checks and stores your data securely.
Step 5: You get a unique 14-digit CKYC number, which is linked to all your KYC information.
Now, whenever you go to any other financial company, you do not need to repeat the KYC process. Just give your CKYC number, and they will pull your data from the central system.
Key Benefits of CKYC
Here are the benefits you can avail after CKYC registration:
- Do your KYC once and use it everywhere.
- Save your time as you do not need to repeat the same steps with each financial institution.
- It would help in faster approval for bank accounts, loans and investments.
- Your documents are safe and secure as they are stored in a government-controlled system.
- Valid for banks, NBFCs, mutual funds and insurance.
Who Needs CKYC?
CKYC is for everyone who wishes to use financial services in India. This includes-
- People opening a bank or savings account.
- Those applying for loans or credit cards.
- Mutual fund or stock market investors.
- People who are buying life or health insurance.
How to Complete Your CKYC?
You can complete your CKYC registration in the following easy steps:
Step 1: Visit a CKYC-approved place like a bank, insurance company or any other financial institution.
Step 2: Submit the required documents.
Step 3: The company will verify your details.
Step 4: Once verification is done, receive your CKYC number.
Documents Required for CKYC
To complete your CKYC in India, you need the following:
- ID proof like PAN Card, Aadhaar card, Passport, Voter ID or driving licence.
- Address proof like Aadhaar card, Passport, electricity bill, rent agreement, etc.
- Passport-size colour photograph.
Note: Ensure that the details on all your documents match.
Also Read : What is E-KYCConclusion
With just one CKYC registration, you do not have to keep repeating the same steps with every new bank or company. It would save your time and effort while keeping your information safe. So, do it today and avail the benefits.
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