Central KYC Registry – for a better customer onboarding experience with Banks

Operational process
As per Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2015, Rule 9 (I) (1A), every reporting entity have to submit the data required as per the common KYC template along with the scanned copy of the certified supporting documents (PoI/PoA), cropped signature and photograph to the central KYC registry within 3 days of onboarding. There are different types of templates for individuals, legal entities etc. CKYCR, in turn, would process the KYC records thus received, for duplication, and issue a 14 digit unique KYC Identifier for each customer to the reporting entity, which will then communicate the KYC Identifier, in writing, to the customer

For individuals, there are three types of accounts – ‘Small’, ‘Simplified’ and ‘Normal’. For ‘Small Account’ types, only personal details and photograph duly certified by the customer are required to be submitted. The KYC identifier for ‘Small Account’ will have a prefix “S”. For Simplified Measures Account, there are additional OVDs that are allowed as per RBI circular 42/2015-16 dated 01stJuly, 2015. The KYC identifier for ‘Simplified Measures Account’ will have a prefix “L”. For ‘Normal Account’, any of six officially valid documents (PAN, AADHAAR, Voter ID, Passport, Driving license, NREGA Job Card) can be submitted for the ID of the customer. The account type can be gauged from the nomenclature of CKYC identifier issued to the customer.

Central KYC information and client details can be accessed by authorized institutions or other notified institutions under the Prevention of Money Laundering Act or rules framed by the Government of India or any Regulator like RBI, SEBI, IRDA, and PFRDA etc. When a customer submits the 14 digit unique KYC Identifier to another reporting entity for the purpose of KYC, then the reporting entity is required to retrieve the KYC records from the CKYCR online, using the KYC Identifier associated with the customer. The customer will not need to submit the same KYC details or any additional identification documents or details, unless, the existing information in the records of the Central KYC Records Registry has undergone a change or the current address of the customer needs to be verified or the reporting entity considers it necessary to verify the identity or address of the customer, or to perform enhanced due diligence or to build an appropriate risk profile of the customer. If any of the above conditions are met, then the reporting entity, after obtaining additional or updated information from the customer, will furnish the updated information to the CKYCR, as soon as possible, thus updating the existing KYC records of the customer. If there is a change in the KYC particulars a customer also can approach any of the reporting entities with whom he has been dealing and ask for a KYC updating the records with the central registry. On update of a customer record being processed at the Central KYC Registry, all linked financial institutions (institutions that have either uploaded or downloaded the KYC record for that customer), will receive an electronic update notification of KYC record. The financial institutions need to download the last updated record of the customer.
Central KYC Registry will enable linkage of multiple communication addresses. An individual wanting to maintain different addresses, office or residential, for different types of relationships, can fill Annexure-A1 and submit the details to the financial institution which in turn will initiate the update request on the Central KYC application. In case of legal entities, where there may be a requirement to maintain different accounts for branches with different communication address, the entities shall submit the correspondence address details in Annexure-A2.

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