CKYC stands for Central Know Your Customer. It started on February 1, 2017, and any prospective investors who want to invest in mutual funds will have to go through the CKYC process.
The Central KYC online Registry is a centralized repository of KYC records of customers in the financial sector with the same KYC norms and inter-applicability of KYC documents with an aim to reduce the burden of producing KYC documents and verify every time the customer creates a new relationship with a financial entity.
Documents required with CKYC online form
Require the submission of a set of documents when submitting a Central KYC online form:
- Correctly filled and signed cKYC form
- A self-attested copy of proof of identity
- A self-attested copy of Proof of Residence
- One photo
How to fill cKYc Form
The CKYC or central KYC form has many clauses that need to be filled. There are various causes related to personal details, tax jurisdiction, documents submitted for proof of identity and proof of address, contact details, related persons, and declarations, and so on.
Types of CKYC accounts
There are three types of accounts in CKYC form:
Normal KYC account– For a normal KYC account, you can submit any of the six official documents as proof of identity. Those documents are PAN card, Aadhaar card, Driving license, Voter ID, Passport, and NREGA job card.
Simplified KYC Account (Low-Risk KYC Account) – These types of account holders are those who cannot deposit any of the above six Official Valid Documents (OVDs) and are classified by banks as “low risk.” Such customers often face problems in producing identity proof or residence proof while doing the KYC process. Such customers can submit any one of the following to cKYC:
- Proof of identity with photograph issued by the state / central government departments, public sector undertakings (PSUs), statutory/regulatory authorities, and public financial institutions and scheduled commercial banks.
- With a duly verified photograph of a person issued by a gazetted officer. All types of accounts will have a prefix -L ‘.
Individuals who do not have any legally valid records of any kind can open a small bank account. These accounts can be opened by submitting a self-test photograph, along with a signed form.
These accounts are initially valid for 12 months. If the customer has applied for any of the legally approved certificates, it indicates that it can be extended up to 12 months upon providing the document to the customer. Those types of KYC accounts come with an ‘S’ prefix.
Such forms of accounts are subject to certain limitations, such as:
- Total credit for not exceeding INR 1, 00,000 in a year.
- Total withdrawals not to exceed INR 10,000 in a month.
- Account balance not exceeding INR 50,000 at any time
Note: Once your KYC is done, there is no need to do it again.