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The program was announced by the Government of India in the 2012-13 Union Budget and went live in July 2016. With Central KYC (C KYC) program, once you finish the KYC process with a financial institution authorized to conduct KYC, it will be sufficient for you to invest in all the other financial products such as Banks, Mutual Funds, Insurance. Central KYC (C KYC) is being managed by The Central Registry of Securitization and Asset Reconstruction and Security Interest in India (CERSAI)
What is C KYC?
Central KYC is a process of storing the KYC details of the customer centrally. C KYC is being managed and administered by the Central Registry of Securitization & Asset Reconstruction and Securities Interest in India (CERSAI).
If you complete the C KYC process with an entity says a bank, it is sufficient for you to invest in all other financial products like insurance, mutual funds, Demat account etc..
Central KYC (C KYC) will store all your (customer) information at one central server that is accessible to all the financial institutions. So completing C KYC process with any bank, Mutual Fund, or an insurance company is enough and you won’t have to do this process again anywhere. You can be using kyc companies such as Fully-Verified to get proper verification process done.
Once your C KYC form is processed successfully, you will receive a 14-digit identification number. This is known as KIN (KYC Identification Number). You need to just quote this number at the time of a new investment or purchasing a financial product with any other financial entity.
What is the difference between KYC, eKYC, and C KYC?
The objective of the KYC guidelines is to prevent identity theft, financial fraud, money laundering and terrorist financing. Money laundering is the process of concealing the source of money usually obtained through illegal sources such as drugs and arms trafficking, terrorism, extortion, and theft. Our article Know Your Customer or KYC discusses why KYC is required.
KYC or Know your Customer: is the known and regular process in the Banks/Mutual Funds whereby the identity of an investor is verified based on written details submitted by him on a form, supplemented by an In-Person Verification (IPV) process. Once the verification is done successfully, the relevant investor data is entered into the KRA Registration Agency (KRA) system and subsequently uploaded to their database.
eKYC or electronic KYC: is KYC done with the help of an investor’s Aadhaar number. While completing the eKYC for Mutual Funds, the authentication of the investor’s identity can be done in following ways. Our article Aadhaar eKYC,eSign: Paperless for PAN, e-NPS, Mutual Funds, Insurance discusses it in detail.Aadhaar eKYC,eSign: Paperless for PAN, e-NPS, Mutual Funds, Insurance discusses it in detail.
C KYC or Central KYC is an initiative of the Government of India where the aim is to have a structure in place which allows investors to do their KYC only once. CKYC compliance will allow an investor to transact/deal with all entities governed/regulated by Government of India / Regulator (RBI, SEBI, IRDA, and PFRDA) without the need to complete multiple KYC formalities which are an inconvenience/hindrance as of now. It will allow for larger market participation by investors, easing their journey on the financial highway. The CKYC processing is handled by CERSAI.
How to get Central KYC done?
If you are a first-time mutual fund investor or planning to open a Savings Bank account or a Demat account, you need to submit below new C KYC form to your financial institution.
In case of mutual fund investments, you can also submit this new KYC form to your mutual fund distributor, or at mutual fund AMC office or any Registrar (like CAMS).
You will have to submit a duly filled & signed C KYC form along with self-attested supporting documents to verify proof of identity and proof of address. Copies of Passport, Aadhar card, Voter ID, Driving license etc., are accepted as supporting documents. In case of any passport issues you can also seek the immigration lawyer’s help as they can sort out any kind of issues related to immigration.
Who is managing C KYC?
This new KYC platform is promoted by the Government and PSU Banks. Central KYC (C KYC) is being managed by The Central Registry of Securitization and Asset Reconstruction and Security Interest in India (CERSAI). You can visit C KYC website by clicking here.
Banks, insurance companies, Mutual Fund companies (AMCs) are now required to hand over their KYC records to CERSAI. CERSAI has now appointed DotEx International as its only managed service provider. Financial intuitions need to upload digital copies of client KYC data on this platform within three days after they onboard a client.
Institutions have to pay an advance fee to Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI). The requisite fee is deducted from this advance payment depending on the usage. Here is the fee structure for various transactions – upload: Rs. 0.80, download: Rs. 1.10, update: Rs. 1.15 per transaction.
How does C KYC help financial institutions?
Since the records are stored digitally, it helps intuitions de-duplicate data so that they don’t need to do KYC of customers multiple times. It helps institutions find out if the client is KYC compliant based on Aadhaar, PAN, and other identity proofs. If the KYC details are updated on this platform by one entity, all other institutions get a real-time update. Thus, the platform helps firms cut down costs substantially by avoiding multiplicity of registration and data upkeep.
What does a first-time investor in mutual funds have to do for CKYC?
C KYC can be done through a mutual fund distributor, or the investor will have to visit the office of a mutual fund or a registrar. Note if you are existing Mutual Fund Investor, you don’t have to do anything.
How will I know that my C KYC application is successful?
You cannot check the CKYC status online. If one is allotted the KIN, it is confirmation that the investor is CKYC compliant. The KIN will be allotted by CERSAI within 4 – 5 working days.
Filling the C KYC Form
C KYC Form Section 1: Personal Details
Details such as Name(Same as ID Proof), Father/Spouse name, Maiden name(if any), Mother name, Gender, Date of Birth, Marital Status, Citizenship, Residential Status, Occupation Type has to be filled in this part.Note: If PAN is not available, Father’s name is mandatory.
Personal Details to be filled in central KYC or C KYC Form
C KYC Form Section 2: RESIDENCE FOR TAX PURPOSES IN JURISDICTION(S) OUTSIDE INDIA
This section has to be filled by the applicant in case of residence for tax purposes in jurisdictions outside India. Details such as ISO 3166 Country Code of Jurisdiction of Residence, Place/City of Birth, Tax Identification Number(TIN) or equivalent(If issued by jurisdiction), and ISO 3166 Country Code of Birth have to be filled in this section.
C KYC Form Section 3: PROOF OF IDENTITY (PoI)
If passport or driving license has been submitted as the identity proof, then it is mandatory to furnish the expiry date of such documents in the form.
C KYC Form fill proof of identity and NRI details
Notes:
Document Type
01 Identity card with applicant’s photograph issued by Central/ State Government Departments, Statutory/ Regulatory Authorities, Public Sector Undertakings, Scheduled Commercial Banks, and Public Financial Institutions.
02 The letter issued by a gazetted officer, with a duly attested photograph of the person.
C KYC Form Section 4: PROOF OF ADDRESS (PoA)
Proof of address in C KYC Form
Notes:
Section 5: CONTACT DETAILS
Details to be furnished in this part include Office Telephone number, Residence Telephone number, Mobile number, FAX and Email Id.
Note: All the communication will be sent on the provided Mobile number/Email Id.
Section 6: DETAILS OF RELATED PERSON
In this part, Addition/Deletion of related person can be done. The related persons could be anyone among the following: Guardian of Minor(used for Minor), Assignee(for Life Insurance Policy), Authorised Representative(used by NRI). If you don’t fall in any of the categories skip the section.
The Assignee is the person to whom the title, rights, and benefits under a life policy are assigned. One can usually come across an assignment where the policyholder is trying to use the life insurance policy as collateral against a loan he intends to raise. An assignment must be in writing and a notice to that effect must be given to the insurer. For example, Mr. X buys a house for which he needs a home loan of Rs. 25 lakh from a bank. Mr. X takes a home loan against his policy of sum assured Rs. 25 lakh. To take a loan from the bank, he assigns the policy to that bank, and then the bank would be able to pay out the loan money to him. If Mr. X failed to repay the loan, then the bank would surrender the policy and get their money back. The original policyholder will pay the premium before or on the payment due date and not the bank.
Proof of Identity proof has to be submitted for the related person. List of documents accepted for the identity proof of the related person is same as the documents mentioned in Section 3 above. For more related persons, you have to fill and submit Annexure B1 along with the CKYC form.
C KYC Form Details of related persons
Section 7: REMARKS (If any)
Section 8: APPLICANT DECLARATION
This part contains the applicant’s declaration on the details furnished in the above sections. The applicant has to mention the date, place and put his/her signature/thumb impression in this section.
Section 9: ATTESTATION / FOR OFFICE USE ONLY
This section is for the official purpose of the financial institution to whom the KYC form will be submitted.
Note: The account type has to be filled by the financial institution as it is for official purpose only.
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