Central KYC Registry: The new KYC norms should make your life easy

All you need to know about Central KYC Registry:

Central KYC Registry

Mr. Ramesh recently opened a Mutual Fund account, now he decided to invest in Direct equity & wanted to open a Dmat account, when he contacted his Broker, he was asked to submit the KYC documents. He was wondering why he has to submit the KYC documents again as he had already submitted the same at the time of opening MF accounts.

The above is the plight of every financial services consumer, to ease this out the Central Government of India has launched a Central KYC Records Registry(CKYCR) system replacing the existing process of KYC submission with effect from August 01, 2016.

What is KYC?

KYC i.e. “Know Your Customer” is a due diligence procedure performed by the financial institutions to obtain the information about the identity and address of the customers. It helps the financial institutions to prevent any fraud such as money laundering activities.

What is Central KYC Registry?

To overcome the issue related to repeated submission of KYC documents with the financial institutions, the Central Government of India created Central Registry of Securitisation Asset Reconstruction and Security Interest of India(CERSAI) with an objective to ensure single KYC across all financial products.

GOI has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India(CERSAI) to manage the Central KYC Registry process. CERSAI will act and perform the functions of the Central KYC Records Registry(CKYCR), which includes storing, receiving, safeguarding and retrieving the KYC records of a “client” in the digital form.

As per the 2015 amendment to Prevention of Money Laundering(Maintenance of Records) Rules, 2005 every reporting entity is entitled to capture the KYC information for sharing with the Central KYC Records Registry(CKYCR) in the manner mentioned in the rules, as per the KYC template finalised for individuals by CERSAI.

Any reporting entity throughout the financial sector will have access to the KYC records maintained by the CKYCR for the establishment of an account based relationship.

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How to check cKYC status?

Earlier there was no way to check your cKYC status online once you had submitted the application.

Lately, Karvy has extended the facility by which you may easily verify your cKYC status online.

Following are the steps to check cKYC status online:

1. Visit the website Check cKYC status

2. A new window opens in which you need to enter your PAN and captcha code. Click “Search Now”.

3. In the new screen, you may find your cKYC details. It shows application status, PAN, KYC holder name and cKYC id. You will have to quote this id in all your KYC-related future correspondences.

4. You need to remember one thing; in case you had registered the KYC in the old system, the screen will show old KYC data instead of cKYC id.

CKYC Form

Below is the link to download the CKYC template…

KYC Template finalised for individuals by CERSAI

Few other important points on Central KYC Registry form

• A single form can be used for both the new KYC registration as well as KYC update.

• A single KYC will be applicable for all the financial institutions.

• Three types of accounts are specified in the new CKYC form i.e. Normal, Simplified (for low risk customers) and Small.

Low risk customers: Low risk customers are the individuals (other than the High Networth Individuals) and entities whose specification and sources of wealth can be identified and transactions in whose accounts by and large confirm to the known profile. Examples of low risk customers are salaried employees, Government departments, and Government owned companies, Regulators and Statutory bodies, etc.

Small Accounts: People who do not possess officially valid KYC documents can open a small account with the banks. These accounts can be opened by submitting a self-attested photograph along with the application by putting a signature or thumbprint on it in the presence of the bank official. However, such account has some restrictions attached to it as listed below:

 There should not be more than Rs. 1,00,000 aggregate credits in a year.
 The aggregate withdrawals should not exceed Rs. 10,000 in a month.
 Balance in the account should not be more than Rs. 50,000 at any point in time.

These accounts will be initially valid for 12 months. Thereafter such accounts can be extended for another 12 months provided that the account holder provides a document showing that they have applied for the officially valid document within 12 months of the account opening.

Various Sections to be filled in Central KYC Registry Form

Section 1: PERSONAL DETAILS

Details such as Name(Same as ID Proof), Father/Spouse name, Maiden name(if any), Mother name, Gender, Date of Birth, Marital Status, Citizens hip, Residential Status, Occupation Type has to be filled in this part.

Note: If PAN is not available, Father’s name is mandatory.

Section 2: RESIDENCE FOR TAX PURPOSES IN JURISDICTION(S) OUTSIDE INDIA

This section has to be filled by the applicant in case of residence for tax purposes in jurisdictions outside India. Details such as ISO 3166 Country Code of Jurisdiction of Residence, Place/City of Birth, Tax Identification Number(TIN) or equivalent(If issued by jurisdiction), and ISO 3166 Country Code of Birth have to be filled in this section.

Section 3: PROOF OF IDENTITY (PoI)

Below is the list of documents accepted as the Proof of Identity:

• A- Passport
• B- Voter ID Card
• C- PAN Card
• D- Driving Licence
• E- UID(Aadhaar)
• F- NREGA Job Card
• Z- Others(any document notified by the Central Government)
• S- Simplified Measures Account

Notes:

• If passport or driving licence has been submitted as the identity proof, then it is mandatory to furnish the expiry date of such documents in the form.
• Identification Number has to be mentioned in case of submission of any other document as notified by the Central Government.
• For Simplified Measures Account, document type code has to be furnished in the form along with the Identification Number. Any of the following document can be submitted, and the appropriate code may be mentioned in the form based on the document submitted:

Proof of identity

Section 4: PROOF OF ADDRESS (PoA)

Below is the list of documents accepted as the Proof of Address:

• Passport
• Driving Licence
• UID(Aadhaar)
• Voter ID Card
• NREGA Job Card
• Others

Notes:

• Address Proof is required only if the document submitted for the Proof of Identity does not contain the address or the address mentioned in the document is no more valid.
• In case of overseas addresses, State/UT Code and PIN/Postcode is not mandatory.
• In case of multiple correspondence or local addresses, you have to fill and submit Annexure A1 along with the Central KYC Registry form.
• For the address verification of the applicant in case of Simplified Measures Account, any of the following document can be submitted, and the appropriate code may be mentioned in the form based on the document submitted:

Proof of address

Section 5: CONTACT DETAILS

Details to be furnished in this part include Office Telephone number, Residence Telephone number, Mobile number, FAX and Email Id.

Note: All the communication will be sent on the provided Mobile number/Email Id.

Section 6: DETAILS OF RELATED PERSON

In this part, Addition/Deletion of related person can be done. Related person could be any one among the following:

 Guardian of Minor
 Assignee
 Authorised Representative

Notes:

• Proof of Identity proof has to be submitted for the related person. List of documents accepted for the identity proof of the related person is same as the documents mentioned in the Section 3 above.
• In case of additional related persons, you have to fill and submit Annexure B1 along with the CKYC form.

Section 7: REMARKS (If any)

Section 8: APPLICANT DECLARATION

This part contains the applicant’s declaration on the details furnished in the above sections. The applicant has to mention the date, place and put his/her signature/thumb impression in this section.

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Section 9: ATTESTATION / FOR OFFICE USE ONLY

This section is for the official purpose of the financial institution to whom the KYC form will be submitted.

Note: The account type has to be filled by the financial institution as it is for official purpose only.

• Wherever state and country code is to be furnished, it has to be in agreement with the Indian Motor Vehicle Act, 1988 and ISO 3166 country code .

Benefits of Central KYC Registry

• It will eliminate the hassle of submitting the KYC documents repeatedly to the financial institutions. For instance, if you have already submitted KYC documents to your bank and if you want to buy a health insurance policy, you don’t have to submit the KYC documents again to the insurance company.

• It will also eliminate the need of submitting multiple documents for the identity and address proof.

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  • Alok Singh says:

    How to apply for it??

    • Research Desk says:

      Dear Alok,
      You need to contact your financial institution such as Bank, Insurance company or Mutual Fund House. They should help you in getting the KYC done.

    • Mymoneysage says:

      Dear Alok,
      You need to contact your financial institution such as Bank, Insurance company or Mutual Fund House. They should help you in getting the KYC done.

  • JIBIN JOY says:

    Sir,
    If our financial institution update data in Central KYC Registry,we will get any Ref.No or copy of KYC?
    How we can check the status of CKYC ?

    Thanking you
    JIBI

  • Narendra says:

    Can this CKYC form be submitted online? If so where to look for a blank for for using online?

  • Pradeep says:

    Is this applicable only for transactions with financial institutions? Or can this CKYC reference number be used to provide identity/address proofs for other requirements like while purchasing SIM cards, availing loans, and so on?

    • Mymoneysage says:

      Dear Pradeep,

      Thanks for being an avid reader.

      Once you open your account with any of the financial institution, they will deposit your KYC documents with the CKYC. It then generates a unique customer ID containing all your identity & personal information. Whosoever is a member of CKYC, known as a Reporting Entity (i.e. as defined in Section 2 of Prevention of Money Laundering Act 2002) may access your information using that customer ID. It means you need not undergo the entire process of verification all over again.

      For now, only financial institutions have been included in this definition. So, in all other cases i.e. non-financial transactions, you may have to undergo KYC procedure.

      • Pradeep says:

        Many thanks for the elaborate response. Sad. I was hoping all this nation-wide discussion about Central KYC meant proving identity/address for any/all purposes would be simplified by this singular process. I now stand demystified.

  • abhinay vinay dhole says:

    ckyc status – follow this link – https://goo.gl/5y6Qt6

  • Rushabh Shah says:

    Are private limited companies providing KYC services eligible to provide services for Ckyc ?
    What are the user cases?
    Where does it apply?

  • Avijit says:

    Are self-attested copies of POA and POI okay?

  • Hi,
    Thanks for sharing this wonderful article about Central KYC Solutions.

    Regards,
    Hemanta Sahu
    iSolve Technologies

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