CKYC Explained: How One 14-Digit Number Can Simplify Your Financial KYC Process

Any financial activity in India requires getting your Know Your Customer (KYC) documents submitted and verified repeatedly. This activity is performed across opening an account or investing. The newly introduced Central Know Your Customer (CKYC) system is designed to simplify this process by using a unique 14-digit identification number. The CKYC number is linked to an individual’s KYC records, which are stored in the Central KYC Records Registry (CKYCR). The individual must only perform the verification process once and go through the KYC verification. Financial institutions like banks, small finance banks, and mutual fund houses can access this information whenever the individual proceeds with a new activity. This reduces the need to submit the same document every time a person opens a new account or invests in a new financial instrument, saving time and effort.

A CKYC number is a unique 14-digit number. It is an identifier for an individual after their KYC details are registered with the central KYC body. The system allows regulated financial institutions to extract the existing KYC information instead of asking customers to complete the entire verification process again and again, making the process longer and more tedious. The system can be used across different financial services, including banks, non-banking financial companies (NBFCs), mutual fund houses, etc.

Purpose of CKYC

The purpose of CKYC is to make onboarding faster and more convenient for the customers. Earlier, individuals had to submit identity and address documents separately to different financial institutions and file their KYC separately for each financial instrument. CKYC reduces this tedious process by providing access to the existing KYC records from the central registry and using them for the newer financial activity. This reduces the paperwork, saves time, and limits the repeated verification procedures for customers who wish to use different financial products and services.

As per a report by Livemint, people can obtain their CKYC number through various easy channels. Customers can contact their banks or give a missed call to the CKYC toll-free number. Individuals can check their details through the official CKYC portal. The RBI has encouraged citizens to be aware of the CKYC system in order to remain financially aware.

This system is introduced with the aim of simplifying the process of accessing financial services easily and conveniently, without reducing repeated KYC paperwork and verification. For customers, knowing their fourteen-digit CKYC number can make future activity in financial instruments easier and less tedious for individuals and even make the process faster on the organisation’s end.