Central Know Your Customers - CKYC


  • Q: What is CKYC?
  • CKYC refers to Central KYC (Know Your Customer), an initiative of the Government of India. The aim of this initiative is to have a structure in place which allows investors to complete their KYC only once before interacting with various entities across the financial sector. CKYC will be managed by CERSAI (Central Registry of Securitization Asset Reconstruction and Security Interest of India), which is authorized by Government of India to function as the Central KYC Registry (CKYCR). The objective of CKYCR is to reduce the burden of producing KYC documents and getting those verified every time when the investor deals with a financial entity for the first time. Thus, CKYCR will act as centralized repository of KYC records of investors in the financial sector with uniform KYC norms and inter-usability of the KYC records across the sector.
  • Q:What is CERSAI?
  • Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI) is a central online security interest registry of India authorized by the Government of India to act as and to perform the functions of the Central KYC Records Registry under the PMLA (Prevention of Money-Laundering) rules 2005, including receiving, storing, safeguarding and retrieving the KYC records in the digital form for a client.

  • Q: What is the difference between KYC, eKYC and CKYC?
  • KYC – is the known and regular process in the Mutual Fund industry whereby the identity of an investor is verified based on written details submitted by him / her 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 – is KYC done with the help of a investor’s Aadhaar number. While completing the eKYC, the authentication of the investor’s identity can be done:
    (a) Via One Time Password (Limits investments to Rs 50,000 per year per mutual funds and mandates investments via the online electronic mode)
    (b) Via Biometrics (No limits on the investment amount here unless those specifically imposed by the scheme / Fund House)
    This data is uploaded into the records of the KRA. CKYC – 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 is 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.

  • Q: Is the information that is currently sought on the current KYC form and the new CKYC form, the same?
  • No. CKYC requires additional information (for e.g. – investor’s maiden name, mother’s name, FATCA information etc) to be collected and submitted to CERSAI for completion of the CKYC formalities of an investor.

  • Q: Why are there so many ways of doing KYC? What is the intent / purpose behind this?
  • Money laundering has become a big problem worldwide threatening the stability of various regions by actively supporting and strengthening terrorist networks and criminal organizations. The links between money laundering, organized crime, drug trafficking and terrorism pose a risk to all financial institutions. This means that we need to know and understand our investors in a much better manner that ever before. With this in mind, the Government / Regulatory Bodies are introducing new and novel ways, enabling people to complete their KYC formalities in a quick and convenient manner. The targeted aim is to ensure that an investor does his / her KYC formalities only once, post which the focus for the investor can subsequently shift towards the actual dealing with the financial institutions.

  • Q: What is ‘KYC Identification Number’?
  • KYC Identification Number (KIN) is a 14 digit number allotted by CERSAI to an investor who has completed his / her CKYC formalities. This number should be mentioned each time the CKYC details are required to be accessed by any intermediary.

  • Q:From when is the CKYC applicable and what procedure do I need to follow?
  • CKYC compliance is applicable for investments received from February 1, 2017 onwards. You need to note the following: a) New investors (investors for whom no record exists in any of the KRAs) will have to mandatorily submit the CKYC form along with the investment application. If the investor has filled the KRA application form in lieu of CKYC form, he will have to additionally submit the Supplementary CKYC form along with the KRA application form. b) Existing investors (investors for whom a record exists in any of the KRAs, regardless of the KYC status) can continue making investments without any additional requirements. In case any modification is required to be done in the KYC status, then only KRA forms are to be used.

  • Q: Is CKYC compliance mandated for all categories of investors?
  • No. Currently, CKYC is applicable only to Individuals (both Resident Individuals and Non-Resident Individuals (NRIs)).

  • Q:What about PAN? Is it mandatory for completing CKYC?
  • PAN is not required to be mandatorily mentioned by the applicant on the CKYC application form provided by CERSAI. This form will be used by institutions which do not require PAN to be provided mandatorily for account opening / transaction purposes. However, from the securities markets perspective, PAN is a mandatory requirement and therefore the said CERSAI form has been modified at our end and investors approaching us for completing CKYC have to mandatorily provide us with their PAN. The KYC type has to be selected as ‘Normal’ on the CKYC application forms and in case any investor does not have a PAN, the KYC type should be selected as ‘PAN Exempt Investors’.

  • Q: What are the documents to be submitted for completion of CKYC formalities?
  • You need to submit the following documents:
    a) Duly filled and signed CKYC application form OR KRA application form + Supplementary CKYC form
    b) One proof of Identity (self-attested copy)
    c) One proof of Address (self-attested copy)
    d) One photograph

  • Q:Please elaborate on the documents to be submitted as proof for the information provided on the CKYC form.
  • You need to submit both proofs of identity as well as address. For identity proof, you may submit any one document - PAN/ passport / voter ID/ driving license / Aadhaar card / NREGA job card / any other document notified by central government. For address proof, you may use the same proofs as submitted as identity proof (except the PAN, since that does not specify the address). If your permanent address is different from the correspondence address, then you need to submit proof for both the addresses. Copies of all documents that are submitted need to be compulsorily self-attested by the applicant and accompanied by originals for verification. In case the original of any document is not produced for verification, then the copies should be properly attested by entities authorized for attesting the documents. For more details, please refer to the “instructions / guidelines” over-leaf on CKYC / Supplementary CKYC form.

  • Q: Is date of birth mandatory to be provided for CKYC compliance?
  • Yes, the date of birth is mandatory information required for processing of your CKYC application.

  • Q:How would I know that my CKYC application is successful?
  • KIN is being allotted by CERSAI to investors whose CKYC application is found to be valid. An SMS / email will be sent by CERSAI to the registered mobile number of the investor as soon as the KIN is generated at their end. Since CERSAI will not be sending any physical intimation, applicants should ideally provide their mobile number and/or email ID in the CKYC application form.

  • Q: I do not have an email ID / mobile number. How will the KIN be informed to me?
  • Upon generation of a KIN, CERSAI as a process will communicate the same vide SMS / email provided on the CKYC form. In the absence of both the details, no communication will be sent by CERSAI. Such an investor needs to contact the entity to which the CKYC application form was submitted. You need to provide the details of the supporting documents (for e.g. if PAN copy was submitted as identity proof, then you would need to provide the PAN) that were submitted to the said entity. It is advisable that you provide an email ID / mobile number on the CKYC form so that you do not miss out on any important communication sent by CERSAI.

  • Q:What is the format of the SMS that would be received by me?
  • A sample copy of the SMS that would be received by you from CERSAI is reproduced below for your reference.

  • Q:If my CKYC application is rejected / fails, will I be informed about the same?
  • If the CKYC application is not processed / rejected for some reason, no intimation will be sent to the applicant from CERSAI. The entity processing your CKYC application will be aware of such rejections and can approach in case of any queries.

  • Q:Is CERSAI responsible for validation of investor data?
  • CERSAI will verify the details as against the supporting documents submitted by investor. However, the onus of completing the CKYC of a customer properly and correctly lies with the entity processing the CKYC.

  • Q:How do I check the CKYC status online?
  • Currently, such an option is not available. If the investor is allotted the KIN, it is confirmation that the investor is CKYC compliant.

  • Q:I have already obtained a KIN. Do I need to submit any more documents for CKYC compliance?
  • Investors who are already allotted a KIN are considered as CKYC compliant. Such investors do not need to submit any more documents for CKYC compliance. However, please ensure to keep the KIN details readily available as it needs to be mentioned on the application form at the time of investing.

  • Q:Within how many days will I receive the KIN?
  • The KIN will be allotted by CERSAI within 4 – 5 working days.

  • Q:I have been allotted a folio for the initial purchase submitted to you along with my CKYC form. However, I have not received the KIN yet. Can I submit another purchase till such time?
  • Yes, we will be able to accept the same provided you have mentioned PAN details on the CKYC form submitted earlier.