What does CKYC mean?
An investor has to undergo a Uniform KYC process only once as KYC details are shared with the CKYCR.
Central KYC Registry (CKYCR) is a centralized repository of KYC records of customers in the financial sector through an entity substantially owned and controlled by Central Government to receive, store and safeguard the KYC records of a client in digital form.
This is to implement uniform KYC norms and inter-usability of the KYC records across entities in the financial sector with an objective to reduce the burden of producing KYC documents and getting those verified every time when the customer creates a new relationship with a entity.
Government of India has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), to act as, and to perform the functions of the Central KYC Registry.
Uniform KYC has been prescribed in order to bring uniformity in KYC process and eliminate the requirement for investors to undergo the KYC process multiple times when opening accounts with different financial intermediaries like mutual funds, stock brokers, depository participants etc. The CKYCR has prescribed uniform KYC guidelines and a standard KYC form and the supporting documents to be obtained by all registered financial intermediaries.
Financial intermediaries shall use this standard KYC form as Part I of their Account Opening Form. The financial intermediary, as part of their account opening process, shall upload the KYC information contained in Part I and documents with CKYCR .
Thus, an investor has to undergo a Uniform KYC process only once and the KYC details are shared by the CKYCR with other financial intermediaries with whom the investor may open accounts subsequently. However, any changes in the KYC information provided earlier need to be updated with any of the intermediaries with whom the investor is maintaining an account.