With the rise in financial fraud, it’s more crucial than ever to preserve accurate client records to track down any unusual activity. CKYC regulations were put in place to prevent the financial industry from being ruined by unlawful conduct. This aids in gaining a deeper understanding of the customer. This also contributes to the investment’s safety.
CKYC has taken the position of KYC (Central Know Your Customer). Earlier KYC regulations included distinct KYC formats for different organizations. With the advent of CKYC, the customer will no longer be required to go through the KYC procedure with any other institution.
Once you’ve completed Central KYC, you won’t have to go through the same procedure again with another institution. This has relieved the investor of the stress of having to go through the KYC procedure again.
What exactly is CKYC?
Central Know Your Customer is abbreviated as CKYC. It is a centralized repository that holds or preserves all of the customer’s personal information. There used to be a separate KYC process for each financial entity. CKYC was established by the Central Government. This facilitates the consolidation of all KYC processes into a single platform.
As a result, once an investor’s entire Central KYC has been verified, he will not have to go through the same procedure again. If he wants to invest in a different financial institution. After then, the data is digitally stored on a single central server. All authorized financial institutions have access to this information. The data can be used by the financial institution as needed.
The government’s Central KYC project, also known as CKYC, aims to consolidate all financial firms’ KYC processes under one roof. Individual investors must meet KYC standards under the CKYC standard.
How Does CKYC Work?
If you’re thinking of investing in the stock market or mutual funds, you’ll have to go through the CKYC procedure. When you contact a fund house to invest, you will be requested to complete a KYC form and present supporting documentation. These papers would be transmitted to CERSAI, and a 14-digit CKYC number would be assigned to you. You will not be required to submit the papers for verification if you desire to invest in another mutual fund firm. CERSAI would be requested by the mutual fund firm to provide your papers by giving your CKYC number. CKYC makes investing simple and stress-free for you.
How to Look Up Your CKYC Number
Following these procedures will allow you to check your CKYC number with a variety of financial services companies:
Go to any financial services company’s website that offers a CKYC check.
Fill in your PAN.
Enter the security code that appears on the screen.
It would show your CKYC number.
The Advantages of a Central KYC Registry
The CKYC registry makes it simple for financial institutions to authenticate papers.
Before beginning a new financial connection with a new financial business, investors do not need to submit KYC papers each time.
Investors can amend their information in the CKYC registration.
The CKYC number can be used to purchase or investment in a variety of financial products, including insurance policies, mutual funds, and stock markets.
What’s the best way to keep CKYC up to date?
The CKYC status may be updated online. To upgrade your CKYC, complete the steps outlined below:
- To begin, go to camskra.com and get the “update in KYC detail.”
- Second, amend the needed field and send it to an intermediary with whom you have a working relationship. A mutual fund, a bank, or a stockbroker can act as an intermediary.
- Third, the middleman enters the information into the corresponding KYC – registration agency or KRA system. You may also check your CKYC status online.
There are now five KRAs. These organizations are in charge of doing your KYC and preserving your records. These organizations include —
- CAMSKRA CAMSKRA CAMSKRA CAMSK (by Cams)
- CDSL Ventures Limited is a private company based in London (a division of CDSL)
- NSDL Database Management Limited is a company that specializes in database management (a subsidiary of NSDL)
- DotEx International Limited is a company based in the United Kingdom (a unit of the National Stock Agency)
- KARVY KRA is a character in the film KARVY KRA (By Karvy)
CKYC assists an investor in purchasing mutual funds or any other financial product. A KYC identity number is given to the customer. The customer’s ID proof is then connected to the number. This number can be used to invest in mutual funds by the investor.
Once the CKYC verification is completed, the investor is not required to repeat the process when interacting with another fund company.