The platform to implement single KYC across all financial products class called central KYC (CKYC) is ready and awaiting regulatory approvals to get operational.
Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) was entrusted with the task of setting up the Central KYC Registry. CERSAI has appointed DotEx International Limited, a NSE group company, as its managed service provider for the Central KYC Registry.
Mukesh Agarwal, CEO, IISL & DotEx said that the platform is ready and they are awaiting the go ahead from the concerned regulators for the launch.
This platform will store all the information of investors at one place which can be accessed by all financial institutions to verify the KYC. All investors need to do is obtain a central KYC number from Central KYC Registry through the financial institutions and use it to invest in any financial product. There will be no need to do multiple KYC.
Currently, a separate KYC is needed for different financial products. For instance, separate KYCs are required for opening a bank account and investing in mutual funds. Distributors feel that the existing complications in KYC norms are, to some extent, proving to be deterrent for new investors to invest in mutual funds. This KYC hindrance is a major cause of concern for the MF industry.
Apart from this, Agarwal who is also heading mutual fund business at NSE told Cafemutual that they have introduced OTP based eKYC service for distributors on their mutual fund platform NMF II to help them execute transactions faster.
