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Soon uniform KYC will be a reality.
SEBI has asked KYC registration agencies (KRAs) to upload verified KYC details of all capital market investors in Central KYC Records Registry (CKYCRR) starting from August 1, 2024.
While KYC data of new clients has to be uploaded within 7 days of validation of the KYC status, details of existing clients will have to be uploaded in CKYCRR system within six months i.e. January 31, 2025.
In this regard, the regulator has asked KRAs to integrate their systems with CKYCRR to begin the uploading process.
CKYCRR is a single know your customer (KYC) system that can be used across all financial transactions like banks, mutual funds, stocks, insurance, and NPS.
Currently, insurance companies and pension fund companies are already using CKYCRR to verify KYC details. This opens door for mutual fund distributors to use CKYC data of insurance and pension funds.
Banks are yet to upload KYC details in CKYCRR. If they start uploading KYC details of their customers, only bank account will be sufficient to invest across all financial products.
In any case, the current move is expected to simplify customer onboarding by reducing the turnaround time to acquire a new client.
