The Central Know Your Customer Registry, often known as CKYC number, is a centralize repository for the Know Your Customer papers of customers who use various services offer by the financial sector.
When beginning a new economic relationship with a new finance firm, the stress of submitting KYC documents for verification can be alleviat using CKYC, which was develop with that goal in mind.
The Prevention of Money Laundering Act of 2002 has a provision call Section 73 that grants the central government the right to establish various rules and regulations to less the amount of “black money.” Because of this power,
the Central Government came up with the concept of CKYC to ensure that individuals only need to go through one KYC process whenever they buy or invest in financial assets.
The CKYC register is overseen by the Central Registration of Securitisation Asset Reconstruction and Security Interest, the highest authority in charge of the registry’s operations.
How CKYC Operates?
If you want to invest money in the stock market or mutual funds, you will have no choice but to go through the Know Your Customer (KYC) procedure. When you go to a fund house to invest, you must fill out a Know Your Customer form and provide supporting papers.
These documents would then be forward to CERSAI, and you would be providing with a CKYC number of 14 digits.
If you want to invest in a different mutual fund firm, you do not need to submit the documents for verification because you will not be require to do so.
The investment company for mutual funds would provide CERSAI with your CKYC number to make a document request on your behalf. The process of investing is made simple and uncomplicate for you by CKYC number.
Influence on Current Investors in Mutual Funds
Existing investors in mutual funds do not have to go through the CKYC process because it is not requires for them. On the other hand, this might shift in the near or far future.
When a current investor in a mutual fund decides to invest with a new fund house, that investor must go through the CKYC procedure as a matter of law.
After completing your documentation, you will be given a unique 14-digit KYC Identification Number. Within three to five business days, CERSAI will assign a KIN to an application that meets the requirements.
Documents for the CKYC
When filing a Central KYC form, an individual is require to include the following list of documents:
- CKYC form that is correctly fill out and sign
- A copy of the individual’s self-attest proof of identity
- A self-attest copy of the residence verification document
- One photograph
How to find out the CKYC number
By following these procedures, you will be able to check your CKYC number with a variety of companies that provide financial services:
- Visit the online platform of any company that provides financial services and a CKYC check.
- Enter your PAN.
- You will need to enter the security code.
- The number that corresponds to your CKYC account will be shown on screen.
Advantages of Using a Centralized KYC Registry
The CKYC registry makes it easier for financial institutions to check customers’ documentation. Investors don’t need to provide a new set of KYC paperevery time before beginning a new economic relationship with a new finance institution.
Investors can make any necessary changes to their information in the CKYC registry.
You can use this number while purchasing or investing in severalfinancecompanies like purchasing a policy and investing in the stock market or in fix deposits to get advantages of FD rates today.
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People in today’s environment expect things to happen for them in a matter of minutes rather than hours or even days.
You were requires to submit KYC paperwork and go through a laborious process when you first starting a financial relationship with a financial company in the past.
The advantages of CKYC number are numerous, ranging from giving financial entities quick and simple access to the documents they would need when onboarding a customer to eliminating the time-consuming process of having to upload KYC documents for customers each time they want to begin a banking relationship.
The procedure for submitting paperwork has been less complicated, more sensible, and significantly safer since the launch of the CKYC registration.