Central KYC Registry , or CKYCR, will replace the existing multiple KYC submission processes one needs to go through for various financial transactions, such as opening bank accounts, buying life insurance, and investing in mutual funds. The government has authorised the Central Registry of Securitisation and Asset Reconstruction and Security Interest of India to manage the CKYC Registry process.
CKYC has been undertaken to move investors to a single KYC platform.
Before this, investors were required to complete KYC formalities with multiple agencies for various financial products. All the records will now be stored digitally, which will helps institutions remove duplicate data. It also helps institutions find out if the client is KYC compliant.
An investor now has to fill the new CKYC form before investing in mutual funds. Along with the form, he has to submit a self-attested copy of his PAN card, and identity and address proofs, such as passport and Aadhaar card. The new form has an extra field for the name of the applicant’s mother. Once the new form is processed by the registrar, a 14-digit KYC Identification Number (KIN) will be issued by CKYC, which can be used to invest in all financial products including mutual funds.
Along with the CKYC form, photocopies of documents have to be physically verified and attested, and an in-person verification of the investor has to be done. CKYC can be done through a mutual fund distributor, or the investor will have to visit the office of a mutual fund or a registrar. In case of NRI applicants, a person is authorised to attest the documents, and he may also conduct the in-person verification and confirm this in the KYC form.
As of now, existing investors in mutual funds who are KYC compliant can continue investing in mutual funds. No updation is required from their end.