Soon banks will start uploading KYC details of their customers on Central Know Your Customer registry (CKYC), said a senior official familiar with the development.
Central KYC Registry keeps KYC records of all customers in the financial sector that can be used by institutions like mutual funds, stockbrokers, insurance firms, banks and SEBI registered investment advisers to verify and download KYC data.
The senior official who is aware of these developments told Cafemutual that RBI had already instructed banks to upload KYC details on Central Registry of Securitization, Asset Reconstruction and Security Interest of India (CERSAI) database. “Fund houses have already started uploading KYC details on CKYC platform. Banks will soon upload the KYC details along with the photographs of their customers. However, insurers and pension fund managers may take a little while,” he said.
Almost everyone who invests in mutual funds has a bank account. Recently, MF CEOs requested SEBI Chief Ajay Tyagi to simplify customer onboarding by allowing bank KYC and Aadhar as valid proof to invest in mutual funds. Allowing bank KYC and Aadhar as valid proof of KYC and in-person verification (IPV) would make KYC procedure smoother and easier, which will eventually help reduce turnaround time to onboard a new client.
Currently, a new investor has to wait for at least a week after submitting the above documents to invest more than Rs.50,000 in mutual funds.
