Monday 7 November 2016

What is CKYC and UCIC for Financial Products?

What is CKYC Number registered with CERSAI:

CKYC is the unified 14 digit KYC Number so as to deduplicate the multiple KYC or eKYC numbers allotted to any individual. 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. As per Prevention of Money-laundering (Maintenance of Records) Amendment Rules, 2015, Rule 9 (I) (1A), every reporting entity shall within three days after the commencement of an account-based relationship with a client, file the electronic copy of the client’s KYC records with the Central KYC Registry. 

There are three account types in the Central KYC form – Normal, Simplified and Small.
The account type can be gauged from the nomenclature of CKYC identifier issued to the customer.
  1. For Normal Account, any of six officially valid documents (PAN, AADHAAR, Voter ID, Passport, Driving licence, NREGA Job Card) can be submitted for the ID of the customer.
  2. For Simplified Measures Account, there are additional OVDs that are allowed as per RBI circular RBI/2015-16/42 dated July 1, 2015 - Point no. 2.3(i) & (ii) and point 3.2.2 I.A (iv) & (v). The KYC identifier for Simplified Measures Account will have a prefix “L”.
  3. For Small Account types, only personal details and photograph duly certified by the customer are required to be submitted. The KYC identifier for Small Account will have a prefix “S”.
Author's Opinion : The implementation of Unique Customer Indentification Code (UCIC) of RBI and now guidelines about CKYC Registry appear to be a distant dream to check the financial and other crimes. Had the GOI formulated policy about issuance of two types of SIM Card that Minor SIM Cards and Major Sim Card before allowing the Reliance JIO to lauch its JIO SIM without going into the reprecussions of its misuse.

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