{"id":6147,"date":"2019-05-04T09:00:36","date_gmt":"2019-05-04T03:30:36","guid":{"rendered":"http:\/\/capitalante.com\/?p=6147"},"modified":"2020-06-14T11:27:46","modified_gmt":"2020-06-14T05:57:46","slug":"central-kyc-registry","status":"publish","type":"post","link":"https:\/\/capitalante.com\/central-kyc-registry\/","title":{"rendered":"Central KYC Registry – Definition, How it works, Benefits"},"content":{"rendered":"

You can enjoy a hassle-free investment option easily. SEBI follows the unified KYC regime which implies that once the individual is KYC verified, the individual need not submit the required documents again to open another mutual fund or buy any financial services or products. In this column, we will discuss what Central KYC Register or CKYCR is and its features, how Central KYC Registry works, <\/span>Difference between KYC, eKYC, cKYC, <\/span>how to check the cKYC status online and its benefits.<\/span><\/p>\n

What is Central KYC Register or CKYCR?<\/span><\/strong><\/h2>\n

The Central Know Your Customer Register or CKYCR was initiated to prevent identity theft, financial fraud, money laundering, and terrorist financing. The prime feature of CKYC is that once any individual\/investor completes his\/her KYC process, he\/she does need to submit the documents again to fulfill KYC norms.<\/span><\/p>\n

Central KYC Register is the centralized repository of KYC records of the individuals. The records of the individual are used by institutions such as Mutual fund houses, Stockbrokers, Insurance companies, and Banks, etc. The uniqueness of the cKYC registry is that whenever the individual complies with the KYC norms to buy or invest in financial products, the individual need not submit the details once again. Various institutions as mentioned above can access the information stored in the central KYC registry. Once verified the individual can invest in mutual funds or buy insurance policies etc.<\/span><\/p>\n

Historical Background of Central KYC registry<\/span><\/strong><\/span><\/h2>\n

Under section 73 of Prevention of Money Laundering Act, 2002, empowers the central government to make rules to prevent the generation of black money. To curb the black money the central government of India has created Central Registry of Securitisation Asset Reconstruction and Security interest of India to ensure Single KYC whenever any individual buys\/invest any financial products. This is the apex body that manages the Central KYC registry for storing, safeguarding, and easily accessible the Know Your Customer records.<\/span><\/p>\n

Difference between KYC, eKYC, cKYC<\/span><\/strong><\/span><\/h2>\n

Needless to say KYC stands for Know Your Customer. With the purpose to curb black money Government has initiated the KYC. Whenever any individual invests in a mutual fund or buys an insurance policy or opening a bank account KYC is mandatory.<\/span><\/p>\n

In order to open a bank account or mutual fund or buy an insurance policy the individual needs to furnish various details such as name, PAN number, Address, in a prescribed form along with required documents such as address proof, identity proof, etc. Then these institutions make use of In-person verification [IPV] which verifies the documents and identity of the person submitted along with KYC form. Once verified, the data of the respective individual and attached documents are entered\/uploaded in the database i.e. KYC Registration Agency (KRA).<\/span><\/p>\n

e-KYC<\/span><\/strong><\/span><\/h3>\n

In order to invest in a mutual fund, NPS, or to buy an insurance policy an individual can make use of eKYC for KYC compliance. But in the case of eKYC any individual can invest up to Rs. 50,000\/- per annum for the fund house. To invest more than that the respective individual will fill up a cKYC. Electronic KYC or eKYC can be done in two ways namely,<\/span><\/p>\n