A Central KYC System to Offer One-time Customer Verification

Authored by: Mohammed Mansoor    Reading Time: 02 min 17 sec

Financial services face several challenges in managing multiple-KYC utilities, which has become a tedious process to verify customers manually. RBI introduced the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) to centralize and digitize customer KYC documents. The primary goal of CERSAI CKYC is to reduce repeated KYC verification.

This blog talks about iFlow CKYC Platform capability to digitize KYC records and enable a single window interface for Banks and NBFCs to perform one-time KYC verification with CERSAI CKYCR API Integration.

If you missed our previous blogs about Digital Customer Onboarding and KYC Verification, click: https://isolve.in/blog/ to know more about it.

iFlow Cental KYC Registry API Integration for Banks and NBFCs
iFlow Cental KYC Registry API Integration for Banks and NBFCs

What is CKYC ?

Central KYC is the procedure of centrally storing the customer’s KYC information.

The Indian Ministry of Finance issued CKYC as a directive, which became operational in 2016 after being initially stated in the Union Budget of 2012–2013. It is controlled and administered by the Central Registry of Securitization & Asset Reconstruction and Securities Interest in India (CERSAI).

With iFlow CKYC, banks and NBFCs may use a single channel for a unified KYC verification to provide their customers with various financial products and services. With one-time KYC submission, customers can easily access financial products and services without hassle.

CKYC Registration Process

The platform digitalizes KYC records and enables one-time KYC verification through CERSAI CKYC API Integration. CKYCR stores all the customer data on a single server. All regulated organizations like banks and NBFCs can access this single server.
    1. Financial institutions collect the documentation required for KYC verification as part of the customer onboarding process.
    2. Documents Required:
      1. Filled & signed CKYC form
      2. Self-attested Proof of Identity
      3. Self-attested proof of Address
      4. Photograph
    3. The FIs submit the collected documents to CERSAI. They verify and store the customer data in CKYCR.
    4. Customers receive a 14-digit KIN (KYC Identification Number) after completing CKYC within 2–5 working days via email and SMS.
    5. The CKYCR portal allows FIs to access the customer KYC information anytime.

The customer can utilize the 14-digit KIN to complete KYC with any other bank, insurance, NBFC, or securities intermediary without resubmitting their KYC documentation. FIs can use the KIN to verify the KYC of a customer registered with CERSAI.

CERSAI CKYCR Regulatory API Integration Benefits
Image Source: CERSAI

The Outcomes

Enhanced Operation:

The platform enables the inter-usability of KYC records amongst CERSAI-registered financial institutions. As a result, the FIs eliminate the time and effort of verifying the customer again.

Cost Optimization:

Since CKYC promotes mutualization of costs across many FIs, the central storage of client KYC data lowers the cost of KYC verification.

Customer experience:

With the help of the KYC number, the FIs confirm their customer’s KYC. As a result, both the customer and the financial institution experience hassle-free onboarding.

KYC Compliance:

CKYC centralizes customer KYC data from all financial authorities, including RBI, SEBI, IRDA, and PFRDA.

iFlow CKYC – Accelerate Customer Onboarding by Centralizing Digital KYC Records

CKYC is an ideal solution introduced by the Indian government to lessen the hassle for FIs to verify their customers’ identities. Also, it improves the overall security, stability, accessibility, and processing of new and existing customers.

iFlow CKYC is a reliable solution that assists financial institutions and NBFCs adhere to the government effort to unify the KYC process for all financial institutions under a single window. It also aids in the prevention of money laundering and other illegal financial practices with deduping and checker functionalities. It offers a verification process that is safer and more effective, compatible with current onboarding practices.

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