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There is a good development towards the implementation of uniform KYC in the financial services industry.
IRDAI has asked insurers to start uploading verified KYC details of all existing policyholders in the Central Records Registry (CKYCRR).
While SEBI has asked KYC registration agencies (KRAs) to upload verified KYC details of all capital market investors in Central KYC Records Registry (CKYCRR) from August 1, 2024, the latest push from IRDAI will expedite the integration of KYC database of capital market and mutual fund investors and insurance policyholders.
The capital market KRAs are expected to upload details of existing clients in CKYCRR system within six months i.e. January 31, 2025.
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.
In a circular, IRDAI said insurers can modify KYC if they receive updated information from policyholders or vice versa. It said, “Where additional or updated KYC information is obtained from a client under Rule 9(1C) of PML Rules, insurers shall furnish the updated information to the CKYCR as per Rule 9(1D). If an update in the KYC record of an existing client is informed by the CKYCR, the Insurers shall retrieve the updated KYC records from the CKYCR and update the KYC record maintained by it.”
The development opens door for mutual fund distributors and insurance agents to use CKYC data of each other.
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.
