CKYC Number – Features and Accounts

Prior to the introduction of the CKYC number, individuals initiating a new financial relationship with an entity had to undergo multiple levels of KYC (Know Your Customer) verifications. This verification process used to be time-consuming, adding the hassle of submitting KYC documents individually to each financial institution from which individuals availed services. 

In 2017, the Government of India introduced a streamlined process, requiring individuals to undergo the KYC process just once. CKYC is this streamlined process of recording all the KYC details of an individual, simplifying the documentation and verification procedure. It also involves allocating a unique identification number to the individuals, linked with their details. 

This blog will walk you through a detailed guide on CKYC while highlighting all the relevant details associated with the CKYC number that you need to know. 

What is CKYC Number? 

CKYC Number is a unique 14-digit number that the Central KYC Registry allots to an individual upon submitting and registering their KYC documents. It aims to eliminate the hassle of documentation and verification each time when an individual has to deal with a financial institution for the first time. The entire process of registering the documents and allotting a CKYC number is regulated by CERSAI. 

Whenever KYC details are required, individuals can simply use this identification number instead of going through the documentation process. In that case, financial institutions can directly verify all details from CERSAI without involving the individual. 

How Does CKYC Number Work?

It is mandatory for all individuals to undergo the process of CKYC before engaging with a financial entity. The process of CKYC is crucial for understanding the background of a customer and maintaining transparency while they navigate the financial landscape. 

To obtain a CKYC number, an individual has to fill out a KYC form and submit the required documents to a financial institution. These documents will be further transmitted to CERSAI.  After submission, individuals are allotted a specific and unique 14-digit CKYC number by a concerned official of CERSAI. 

Once the CKYC number is allotted, there is no need for an individual to submit their KYC documents for verification upon onboarding with a new financial institution. The concerned representative of the financial institution will validate all the required documents directly from the CERSAI through the applicant’s CKYC number, making verification hassle-free for investors. 

Features of CKYC

Here are some of the salient features of CKYC that you need to know. 

1. Makes all documents associated with a customer’s identity easily accessible by linking the identification proof with a 14-digit number
2. Aims to store all personal information of a customer electronically in the CKYC database, eliminating the need for physical storage of such details 
3. Notifies all relevant institutions about any updates in the customer’s KYC details 
4. Ensures a hassle-free verification process, eliminating the need to go through different KYC documents every time a new customer gets onboard 
5. Accepts documents in a centralised database that qualifies after verification and validation as per a set standard followed across all financial institutions

How to Check CKYC Number?

Here’s how you can check your CKYC identification number through the official portal: 

• Step 1: Visit the official portal of the Central KYC Registry. You can also choose any other authorised service provider offering a CKYC check facility. 
• Step 2: Login into the portal using your registered credentials. 
• Step 3: Enter your PAN Card number. 
• Step 4: Enter the security or CAPTCHA code that is displayed on the screen. 

The following page will display your CKYC number along with the details of its status. 

Types of CKYC Accounts

There are four different types of CKYC accounts introduced as per the directives of the Ministry of Finance. 

1. Normal Account 

A normal account is opened upon submitting a document associated with the customer’s identification. This set of documents includes PAN Card, Aadhaar Card, Voter ID Card, Driving Licence, Passport and NREGA Job Card. If a customer submits any of these documents, he/she will hold a normal type of CKYC Account.

2. Simplified/Low Risk Account

This account is opened when a customer submits any of the documents as mentioned in the RBI Circular RBI/2015-16/42 in place of the above-mentioned 6 documents as identity proof. This account simplifies the process for investors where they can just submit a KYC form that is accepted by all banks and other entities. 

3. Small Account

A small account is opened for customers who cannot submit any official valid documents for their CKYC process. Individuals can hold this type of account by simply submitting their personal details with a photograph. 

4. OTP-Based eKYC Account

This type of account can be opened by providing an OTP (one-time password) which is generated after verifying the downloaded Aadhar Card from the UIDAI website along with a recent photograph of an individual. 

Process of Completing CKYC

The following is a stepwise guide on how to complete the CKYC process:

• Step 1: Visit the nearest branch of your preferred financial institution that is regulated by RBI, IRDA, PFRDA, or SEBI along with the necessary documents. 
• Step 2: Consult with a branch representative and submit the documents along with the duly signed CKYC application form. 

A representative will verify your application form and other documents. Upon successful verification, the concerned representative will further issue you a 14-digit KYC Identification Number (KIN). Keep it safe for future reference, especially while availing financial services. 

How Does CKYC Number Impact Mutual Fund Investors?

The impact of having a central KYC repository number differs for new mutual fund investors as compared to the existing ones. Let’s find out how: 

1. New Mutual Fund Investors 

Without the CKYC number, new investors will not be able to proceed with investing in mutual funds. For this, they will have to fill out the official CKYC form and submit it to an authorised financial institution along with supporting documents.  If not, investors will have to go through the entire documentation and verification process. 

2. Existing Mutual Fund Investors

With a CKYC number, existing mutual fund investors can continue investing in mutual funds, from whichever fund house they intend to. A fund house, be it any, will not require these investors to undergo the process of CKYC documentation and verification before starting a new investment. 

Benefits of Central KYC Registry

Here are some of the common benefits of the Central KYC Registry:

1. By keeping a centralised record of the customer’s documents and information, the Central KYC registry enables financial institutions to go through the verification process with ease. 
2. The registry saves existing investors from the hassle of documentation every time they start a new investment relationship with a financial company. 
3. It allows investors to easily update their documents and other personal information, in case of a change in their details. 

Documents Required for Registration

Here is a list of documents that an individual has to submit for the CKYC registration process: 

1. CKYC Application Form
2. Recent Passport-size Photographs 
3. Identity Proof (Aadhaar Card, Passport, Driving License) 
4. Address Proof (Voter ID Card, Utility Bills) 
5. Pan Card 
6. Bank Account Details 

What is the Difference Between KYC, eKYC and CKYC?  

Take a look at the following table to understand the key differences between KYC, eKYC and CKYC: 

How to Update CKYC Online?

Here is a stepwise process as to how you can update the CKYC details through online mode: 

• Step 1: Visit the official portal of the Central KYC Registry. 
• Step 2: Click on the ‘Login’ tab and Login to your account using your registered details. 
• Step 3: Navigate to the ‘Update KYC’ option from the ‘Settings’ tab on the main page, by clicking on it.
• Step 4: Update the relevant information as required. 
• Step 5: Attach the scanned copies of the supporting documents to validate the updated information. 
• Step 6: Submit the documents. 
• Step 7: Enter the OTP sent on your registered mobile number or email ID. 
• Step 8: Click on the ‘Submit’ tab. 

Once you go through the above-mentioned steps, the registry will review your KYC update request and verify the submitted documents. Upon successful verification, you will be notified within a few business days. 

You can also update your CKYC details offline by downloading the application form required for CKYC update from the official portal and submitting it to your financial institution. Your financial institution will take care of the rest and notify you once done. 

Conclusion

When it comes to availing a financial service, be it investing in mutual funds or buying an insurance policy, KYC is obligatory to ensure compliance with Indian regulations. CKYC is a step ahead, providing a seamless KYC process for both customers and financial institutions. Therefore, make sure to register for a CKYC number for a convenient and quick onboarding process with your preferred financial institution. 

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