What is CKYC? What are its types, benefits and how to view CKYC Status

The purpose of each CKYC is to meet each investor's particular demands. A normal CKYC for an individual is an extensive compilation of the customer's address evidence, identification proof, and personal information with documents like Aadhaar and PAN Card in place. It guarantees that the central KYC procedure is comprehensive and customized to a person's unique financial profile.

Individual CKYC is especially important for those looking for different financial products, such as stock market investments, insurance, or mutual funds.

As the name implies, simplified CKYC is a condensed form of the central KYC procedure, particularly for those who might not have easy access to all the customary paperwork. Under this, individuals can submit Other Valid Documents such a latest utility bills, Aadhaar letter issued by UIDAI or the Job Card issued by NREGA.

When one opens a bank account by submitting only the personal details with a photograph, their KYC is prefixed with an ‘S’ and labelled as Small Account CKYC.

Opening a bank account with your recent photograph and Aadhaar card PDF enabled by UIDAI-powered OTP, your KYC is labelled with an ‘O’ and called as OTP Based eKYC Account.

Customers looking for different financial products no longer have to endure the tedious process of multiple KYC verifications thanks to central KYC. Redundancy and delays resulted from banking institutions conducting their own KYC procedures in the past. A customer's information is kept in a centralized repository with CKYC, making it quick and easy for any registered financial institution to access and validate it. By greatly cutting down on the time and effort required for onboarding, this streamlining gives clients a smoother experience.

The strengthening of security measures is one of CKYC's most important advantages. CKYC is a strong deterrent against identity theft and fraudulent activity by centralizing client information. By accessing current and accurate information, financial institutions can be sure that the person they are doing business with is who they say they are. This fortifies the entire financial ecosystem against possible dangers and protects the clients.

Financial institutions experience considerable cost savings as a result of central KYC. There is no need for redundant paperwork or customer verification processes because CKYC is centralized. This operational efficiency not only reduces the cost of manual KYC procedures but also allows financial institutions to deploy resources more effectively. The resulting savings can be given to customers or reinvested in services, resulting in a more competitive and efficient financial climate.

In a constantly changing financial landscape, client data can easily become stale. To meet this difficulty, CKYC keeps an up-to-date, consolidated library of client data. This guarantees that financial institutions have access to the most up-to-date and correct information when making choices or carrying out transactions. Consistency in consumer data helps to make decision-making processes more informed.

By providing a streamlined onboarding procedure, CKYC is essential in advancing financial inclusion. Financial services are now available to those who might not have easy access to all of the customary documentation, thanks to the introduction of Simplified CKYC (sCKYC). Reaching marginalised communities and enabling a larger public segment to engage in formal financial systems depend on this inclusion.