Have you recently given any attention to the possibility of using a standardized Know Your Customer (KYC) database every single time you provide your KYC details to banking institutions? A centralized repository that can do away with the procedure of submitting your KYC paperwork will, in turn, save you the effort and time you would have spent submitting these documents each time you are requested for them. Now, CKYC is something that may be of use to you in dealing with that situation. But what is CKYC? Let us explain this.
What is CKYC?
In February of 2017, CKYC was introduced to facilitate contributions in a way that is both straightforward and trouble-free. Supporters of the cause financially Customers should complete the Know Your Customer (CKYC) interaction just once, and they should do it either with a bank, a joint asset company, or an insurance company. They won’t be required to go through the Know Your Customer procedure once more before contributing to any other financial institution.
1. Simple signup and enrollment processes
Because of this, you, the financial adviser, as well as the financial product manufacturer, won’t have to go through the laborious KYC procedure as many times as you would have otherwise.
It won’t be necessary for you to spend time filling out a large number of different KYC forms and providing a large number of different papers that you have self-attested.
Because there are fewer obstacles to overcome, it is now much easier to persuade a customer to invest in a fixed deposit or perhaps a mutual fund program. This will save you time & enable you to focus on building up financial plans, responding to their questions, and educating them about the many opportunities for investment in financial services.
2. Central document storage
Since its Central KYC Registry saves all of the information together with the legitimate documents, it makes it easier for financial companies to authenticate the details by using the person’s particular 14-digit CKYC number. When purchasing any kind of financial service or product, the person would no longer have to go through the time-consuming procedure of filling out KYC forms and providing a large number of self-attested papers on multiple occasions. Once you know what is CKYC and how it works, then you will understand its importance.
A person is granted access to the Central KYC Registry and also can make any necessary changes to their previously stored information.
3. Saves time and energy
When a financial backer has already been enrolled in CKYC, they are exempt from having to go through the complete documentation process again. When compared to donating to any other monetary organization, the on boarding encounter with our company takes significantly less time. It delivers the optimization in expenses of KYC verifications by dividing the financial strain across all of the financial institutions.
What is the CKYC time line?
To comply with the Prevention of Money Laundering (Management of Information) Amendment Rules, 2015, you are required to submit an electronic copy of such client’s KYC records to the central KYC registry within three business days of the beginning of such an account-based relationship. A CKYC application form is available for download on this page.
What is CKYC: Conclusion
The removal of entry barriers is being helped along by the CKYC, which is a positive development. Investors would be encouraged to invest their money in the stock market as a result of this. Both financial planners, as well as investors, expect to profit from this arrangement, making it a win-win scenario. With CKYC, the banking institutions can ensure a robust screening as well as monitoring of the transactions without putting their customers through any kind of hassle with the verification process.