Wednesday, January 25, 2017

CKYC - from 1st February,2017

What is CKYC? 

Central KYC Registry is a centralized repository of KYC records of customers in the financial sector with uniform KYC norms and inter-usability of the KYC records across the sector with an objective to reduce the burden of producing KYC documents and getting those verified every time when the customer creates a new relationship with a financial entity.

The Central Govt. vide notification dated. Nov, 26, 2015 has authorised Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) to act as and to perform the functions of the CKYC Registry including receiving, storing, safeguarding and retrieving the KYC records in digital form of a Client. A 14 digit CKYC Number would be issued as identifier of each client.

From when will CKYC come into effect for Mutual Fund Transactions? 

AMFI has mandated within the Best Practice Circular that the new CKYC process needs to be implemented from 01-02-2017

What is the alteration in MF New investor on-boarding process? 

Previously, a new investor had to undergo one time KYC procedure at a MF industry level. Now if such a customer has already completed KYC process (For instance During bank account opening) then he/she must provide the 14 Digit KIN.

As PAN is mandatory for MF investments (Except for PAN exempted cases), if the CKYC is done by such investor earlier without PAN submission, then he/she must submit a self-certified PAN card copy along with the 14 digit KIN.

First Time investing in Financial Sector (New Investor) New to KRA-KYC while on boarding first time investors to MF and those who do not have KYC registered as per existing KRA norms, such investors should fill up the new CKYC form. This new KYC form is in line with CKYC form guidelines and requirements and hence captures all information needed for CKYC as well mandatory requirements for MF. Kindly request your investors to fill up and provide PAN card as a mandatory ID proof.

If such investors submit old KYC-KRA form, then they will have to be requested to fill up and submit the new CKYC form so that the one time 14 digit KIN-KYC ID number can get generated.

There is no change in terms of the documents to be submitted as ID proof and address proof.

For further information, please go through FAQ posted under the following link: 

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