What is Central KYC (CKYC)? A Complete Guide to Central KYC in India

The Central KYC (CKYC) system is a government initiative designed to simplify the Know Your Customer (KYC) process across financial institutions in India. Managed by the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), CKYC allows customers to complete their KYC just once and use it across multiple banks, NBFCs, mutual funds, and other financial entities.

In this blog, we’ll explore what CKYC is, how it works, its benefits, and how you can register for it.

What is CKYC?

The Central KYC (CKYC) is a centralized database that stores and verifies customer KYC details, ensuring that individuals don’t have to submit their KYC documents repeatedly for different financial services. It was introduced by CERSAI under the guidelines of the Reserve Bank of India (RBI) to streamline compliance and enhance customer convenience.

Before CKYC: Customers had to submit their KYC documents separately for each financial institution.After CKYC: A one-time KYC submission allows customers to access multiple financial services without repeating the process.

Once a person registers with CKYC, they receive a 14-digit CKYC Identification Number (KIN), which can be used for all financial transactions.

How Does CKYC Work?

Submission of KYC Documents: Customers submit their identity and address proof (Aadhaar, PAN, Passport, etc.) along with a filled CKYC form at any financial institution.Verification by Financial Institution: The institution verifies and uploads the KYC details to the CKYC Registry.CKYC Number Generation: Once the data is verified, a unique CKYC number (KIN) is assigned to the customer.Universal KYC Access: Any financial entity can retrieve the KYC details using the CKYC number, eliminating the need for repeated submissions.

Key Features and Benefits of CKYC

For Customers

One-Time Submission: Submit KYC documents once, and use the CKYC number for multiple financial services.Faster Account Opening: Reduces delays in banking, investment, and loan processing.Enhanced Security: Eliminates the risk of document tampering or identity fraud.

 For Financial Institutions

 Regulatory Compliance: Ensures adherence to Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) guidelines.Lower Operational Costs: Reduces paperwork and document verification efforts.Improved Risk Management: Access to a centralized KYC database helps detect fraudulent accounts.

Types of CKYC Accounts

There are four types of CKYC accounts, classified based on the type of documents submitted:

Normal CKYC – Requires PAN, Aadhaar, Voter ID, Passport, or Driving License.Simplified CKYC – For customers without PAN, using government-approved address proofs.Small CKYC – For individuals with limited financial access, with a transaction limit of ₹50,000 per year.OTP-Based CKYC – A fully digital KYC process using Aadhaar OTP verification.

How to Register for CKYC?

Registering for CKYC is a straightforward process:

Step 1: Visit any bank, NBFC, mutual fund house, or financial institution that supports CKYC registration.

Step 2: Fill out the CKYC form with personal details.

Step 3: Submit valid identity and address proof (PAN, Aadhaar, Passport, etc.).

 Step 4: Provide a passport-size photograph.

Step 5: Once verified, you will receive a CKYC Identification Number (KIN) via email or SMS.

 Tip: Keep your CKYC number safe, as it can be used for various financial transactions.

How to Check CKYC Number?

If you have registered for CKYC but don’t know your CKYC number, you can check it using the following methods:

Through Your Bank/NBFC: Request your CKYC number from the institution where you submitted your KYC.

 Via Mutual Fund Portal: Visit CAMS or KFintech mutual fund platforms and enter your PAN to retrieve your CKYC details.

CKYC vs eKYC vs Aadhaar KYC: What’s the Difference?

Feature	CKYC	eKYC	Aadhaar KYC
Type	Centralized Database	Digital KYC	Aadhaar-Based KYC
Regulatory Body	CERSAI	UIDAI	UIDAI
Document Submission	Once for all institutions	Online via Aadhaar OTP	Aadhaar-Based Verification
Usage	Multiple Financial Services	Digital-Only Transactions	Aadhaar-Linked Accounts

Conclusion: CKYC is a universal KYC system, while eKYC and Aadhaar KYC are digital verification methods.

Challenges in CKYC Implementation

Despite its advantages, CKYC faces certain challenges:

Limited Awareness: Many customers and small financial institutions are unaware of CKYC benefits.Data

Security Concerns: Since it involves centralized data storage, robust cybersecurity measures are essential.

Slow Adoption by Small Banks & NBFCs: Many financial institutions are yet to integrate with CKYC due to operational challenges.

However, with increasing digitization,

CKYC adoption is expected to grow, making financial processes more efficient and secure.

Future of CKYC in India

The CKYC framework is constantly evolving. Some expected developments include:

Integration with AI & Blockchain: For better security and fraud prevention.

Expansion to NRIs & Foreign Investors: Simplifying global transactions.

Fully Digital CKYC Verification: Reducing manual intervention for faster processing.

With these advancements, CKYC is set to become a cornerstone of financial inclusion in India.

Conclusion

The Central KYC (CKYC) system is a game-changer for both customers and financial institutions. By eliminating the need for multiple KYC submissions, it enhances efficiency, security, and compliance.

If you haven’t registered for CKYC yet, consider doing so to enjoy seamless financial transactions across various platforms. With continuous improvements and widespread adoption, CKYC is a significant step toward a digitized financial ecosystem in India.