The move is aimed at ensuring uniform KYC process and inter-usability of KYC records across the entire financial sector. It will also result in huge cost savings for all financial institutions and customers. “CERSAI and DotEx have launched online C-KYC (central know your customers) registry, a unique initiative of government of India, to simplify KYC process,” NSE said in a statement.
In C-KYC, investors need to submit their KYC details only once with any financial institution. Thereafter, they are assigned a unique central KYC number which can be used across all financial products, including bank accounts, mutual fund investments, insurance policies and demat accounts.
In addition, C-KYC will also solve the problem of financial institutions and intermediaries which at present have to deal with multiple KRAs under Sebi.
CERSAI (Central Registry of Securitisation and Asset Reconstruction and Security Interest of India), a government undertaking, was entrusted with the task of maintaining C-KYC Registry while DotEx International is the managed-service provider for C-KYC handling operations as well as the helpdesk on behalf of CERSAI.
“C-KYC will also facilitate faster turnaround at substantial cost savings with an average cost of around Rs 1 per upload, download or update,” DotEx International Chief Executive Mukesh Agarwal said.
At present, most financial institutions pay about Rs 20-35 per KYC.
“It is expected to be of great help to financial institutions and customers who have to undergo KYC multiple times across different financial institutions. Further, C-KYC will ensure uniform KYC process across financial institutions and result in significant cost savings for financial institutions and customers,” Department of Financial Services Joint Secretary Mohammed Mustafa said.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
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