RBI has instructed banks to share data for uniform KYC under the proposed Central Know Your Customer registry (CKYC). The instruction was given through Indian Bank’s Association (IBA) in June.
Earlier, the Supreme Court appointed Special Investigation Team on black money had recommended the set up of a CKYC registry agency which will help all financial institutions like banks, fund houses and insurance companies perform KYC through a single window. CKYC registry will link different identity proofs like PAN, Aadhaar and Passport of an individual to help track all financial transactions.
Banks were asked to put in place a mechanism to upload the KYC details along with the photographs of their customers to the Central Registry of Securitization, Asset Reconstruction and Security Interest of India (CERSAI) database.
In a letter to banks, IBA had said’ “RBI has directed IBA to circulate the common template prepared under the proposed Central KYC Registry amongst the member banks advising them to prepare their systems and do a pilot run by furnishing the customer information in the common template and upload the KYC data together with the photographs of the customer to the CERSAI database.”
It further said, “Banks have to be ready with the pilot run and such uploading of KYC data should be done only after the necessary notification are issued.”
CERSAI is likely to act as the CKYC registry agency which will help all financial institutions and intermediaries to upload KYC data, documents and other information. Currently, all SEBI regulated entities like mutual funds, brokerage houses are uploading KYC details on CERSAI database.
IBA has advised banks to use common template for uploading such details on CERSAI database.
As of now, a separate KYC is needed for different financial products. The Sales Head of a foreign fund house believes that such a move can benefit fund houses and distributors. “The proposed facility will streamline the KYC process. Everything will be done under one roof. It will expedite the KYC process and provide convenience to all financial institutions.”
