Central KYC or CKYC have substituted the previous KYC method. It is a centralized method that prevents you from submitting various KYCs while opening savings bank accounts, purchasing life insurance, or investing in one-time centralized process in mutual fund products. How to check online the status of CKYC or Central KYC?
CKYC stands for Central KYC, a centralized repository that centrally enables the storage of customer’s private data. Earlier, when a customer went to a financial institution to purchase any service, it was necessary to do KYC (Know Your Customer) at times for each product and individually with each institution (corporation).
KYC is a governed method that requires specific data, records and verification afterward. Realistically, this KYC should be sufficient for all financial institutions in India if appropriately performed once. CKYC or central KYC may be used through financial institutions such as banks, mutual funds, insurance companies, NBFCs, etc. The CKYC program was declared in the 2012-13 Union Budget by the Government of India and went live in July 2016. The Central Registry for Securitization and Asset Reconstruction and Security Interest in India (CERSAI) manages the Central KYC (cKYC). So, with cKYC, you don’t have to do it again once your KYC is done.
As I mentioned above, the previous KYC method has now been substituted by this new Central KYC or CKYC. It decreased KYC’s numerous submission at various financial transaction phases.
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What is Central KYC or CKYC?
For all your financial activities, it is a single, centralized KYC online method. In KYC’s previous format, PAN was an investor’s sole identifier. However, the list extends beyond Aadhaar and PAN in the new Central KYC registry scheme. It removes KYC’s submission of your monetary transactions to distinct levels or financial institutions.
Creating new KYC or modifying the current KYC is also a single method. It specifies three kinds of accounts. One is reasonable, the other is simplified or for customers at low risk, and the third is small investor. You need to choose which one applies to you.
If your aggregate of all credits in a financial year does not increase one lakh of rupees, the total of all withdrawals and transfers in a month does not surpass ten thousand rupees or the balance at any time does not exceed fifty thousand rupees, then you will be regarded as an investor type of SMALL account.
Customers who are simplified or low-risk means customers who cannot submit any of the 6 listed documents. It’s Passport, driving license, PAN card, Voter ID, NREGA or Aadhaar Card job card.
The FATCA statement also involves this CKYC or Central KYC. Therefore, it prevents you from declaring the same at the distinct stage of your investment.
Details required with cKYC Form The following set of documents must be submitted when submitting a Central KYC form:
- Accurately filled and signed cKYC form
- A self-attested copy of Proof of Identity
- A self-attested copy of Proof of Residence
- One photograph.