What is CKYC exactly....?

[Talkwithfino]

So what is CKYC exactly...? I do know some basics.... like its a Central Depository of KYC records; and its maintained by CERSAI. But is it like compulsory to do it..? Who uses/ when does ckyc come handy... while investing in MF's , while opening trading acc or while opening Bank Acc..? Many people have multiple bank acc's. So lets say tomorrow I want to open another Bank acc... will I have to do Kyc or will the Bank fetch my data from CKYC records...?

Some other questions related to CKYC....
1) At what point was LazyPay/ PayU was able to access Customer's data [above Screenshot] ..... and does it require OTP for the same to authorize/access your data...?
2) If there is any correction in CKYC data.... how to do it online?

 

[AsB]

CKYC is Centralized Know Your Customer in full form. It is basically used by the Ministry such that one financial institution can store all KYC related data like Aadhar , PAN, Address (Home and Office), etc. in one place- with extreme security, and only available to financial institutions and law governing bodies. It was done for a few important reasons :-

• To reduce frauds :- Since CKYC is centralized, one can immediately verify any KYC against the Aadhar/PAN Number, and if let's say a person has produced different Aadhar number for the same PAN Number, or if the person has multiple Govt. Id proofs of same type (like multiple Aadhar cards, etc., ), even multiple shell companies, then that can be avoided. It helps in protecting against terror/drug financing.

• To reduce misuse :- Many financial institutes like Dhani generally open loan accounts without the customer's permission. Using CKYC can reveal if the customer had actually applied for that loan/service. If yes, the date, time, location, mobile number used, etc. everything will be mentioned in the CKYC detail.

• To re-use the KYC documents :- Just like SBI Sprint, institutions can re-use the KYCs if they find consistency in the documents. This will help lower the burden of providing services without much verification. I got my SBI Card in this way.

To answer your questions :-

1) At what point was LazyPay/ PayU was able to access Customer's data [above Screenshot] ..... and does it require OTP for the same to authorize/access your data...?
2) If there is any correction in CKYC data.... how to do it online?

1) All financial insitutions are bound to upload users' documents in CKYC if they (the financial institutions) have opted for it.
2) Since CKYC is very critical and require physical verification at least once, it can only be updated by financial institutions as of now. Otherwise, anyone can update their address and change it back , to get some services.

 

[SC_23]

So I opened an account in HDFC this Feb after few days I got mail related to CKYC which I didn't opted for it
I asked the person who opened my account and he told me that he did CKYC

Btw are there any downsides to it ? and he didn't told me that he will make/update my CKYC

He also told me if your CKYC is done you don't need to update KYC in other banks even if you are getting to update kyc request from banks in my case it was SBI

 

[AsB]

So I opened an account in HDFC this Feb after few days I got mail related to CKYC which I didn't opted for it
I asked the person who opened my account and he told me that he did CKYC

Btw are there any downsides to it ? and he didn't told me that he will make/update my CKYC

He also told me if your CKYC is done you don't need to update KYC in other banks even if you are getting to update kyc request from banks in my case it was SBI

Downside is, since it is technology driven, all limitations to technology is applicable here.

However, I suggest that you complete KYC in all banks for now. We do not know, how much advanced technology is used.

 

[SC_23]

Downside is, since it is technology driven, all limitations to technology is applicable here.

However, I suggest that you complete KYC in all banks for now. We do not know, how much advanced technology is used.

I was scared when I got random mail with KYC in its subject 🤣 so not any significant dis/advantage
Yea will have to go to SBI Now

 

[Talkwithfino]

CKYC is Centralized Know Your Customer in full form. It is basically used by the Ministry such that one financial institution can store all KYC related data like Aadhar , PAN, Address (Home and Office), etc. in one place- with extreme security, and only available to financial institutions and law governing bodies. It was done for a few important reasons :-

Thanksss for such a detailed ans 😀

 

[Talkwithfino]

I was scared when I got random mail with KYC in its subject 🤣 so not any significant dis/advantage
Yea will have to go to SBI Now

Same here😂

 

[ashwinkashwink is verified member.]

Same here😂

Me too 😅

 

[AsB]

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