 "Tipping Point: What is ordinary KYC?")
What is ordinary KYC?
When you open an account with a bank, the KYC (Know Your Customer) done by the bank resides with it. If you wish to open an account with three banks, you need to submit KYC-related documents three times. In case of market-linked products, the Securities and Exchange Board of India has said that a single KYC can be used by others. So, the next intermediary just takes your PAN card and date of birth, and validates those. Your account gets opened immediately.
How does centralised KYC help customers?
Centralised KYC (cKYC) makes it easier for customers to enlist for all services. All financial institutions have to upload the KYC data of their customers into the database maintained by the cKYC registry. Anybody — an insurer, bank, broker, mutual fund distributor, or even a mobile phone company — can use that database to verify the credentials of new customers.
When you open an account with a bank, the KYC (Know Your Customer) done by the bank resides with it. If you wish to open an account with three banks, you need to submit KYC-related documents three times. In case of market-linked products, the Securities and Exchange Board of India has said that a single KYC can be used by others. So, the next intermediary just takes your PAN card and date of birth, and validates those. Your account gets opened immediately.
How does centralised KYC help customers?
Centralised KYC (cKYC) makes it easier for customers to enlist for all services. All financial institutions have to upload the KYC data of their customers into the database maintained by the cKYC registry. Anybody — an insurer, bank, broker, mutual fund distributor, or even a mobile phone company — can use that database to verify the credentials of new customers.
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