What is CKYCRR? Full Form, Function, And Benefits

In the past, individuals need to re-submit the documents to a new institution, whenever they apply for a financial service. It results in redundancy documentation and takes time in onboarding. To solve this issue, the Government of India in collaboration with CERSAI launched CKYCRR (Central Know Your Customer Record Registry). This repository gives access to KYC data and improves operational efficiency. To know more about the CKYCRR, read until the end.

What is CKYCRR and Its Full Form?

The CKYCRR full form is Central KYC Records Registry. It is a centralised database that stores and maintains the KYC information of customers. This platform makes the KYC Verification process easy by providing access to verified KYC documents to banks and financial institutions.

Purpose of CKYCRR

The main purpose of CKYCRR is to solve the inefficiency of the traditional KYC process, where customers need to submit documents whenever they apply for a new financial service in the bank. The Central Repository eliminates repeated documentation with centralized access.

How Does CKYCRR Work?

Here is the brief of the process:

• KYC Submission: Customers submit their documents for verification during the KYC process to the financial institution.
• Data Upload: The financial institution uploads the verified details to the CKYCRR database.
• Unique KYC ID: A 14-digit KYC identifier (KYC ID) or KIN is assigned to the customer.
• Data Sharing: Customers use KIN to share verified KYC data with other financial institutions without the need to resubmit documents while accessing financial services at the new institution.

Document Required for CKYCRR

You need the following documents for CKYC:

• Proof of Identity: Documents like PAN Card, Aadhaar Card, Passport, Voter ID, DL, are required for identity verification.
• Proof of Address: Documents such as electricity bill, Water bill, rent bills are used to confirm the address.
• Photograph: A recent or latest passport size photograph is required for identification purpose.
• Birth Certificate: You need Date of Birth Certificate or proof for verification of your DOB and palace of birth by the official.

CKYCRR Record Bearing Reference

The CKYC Record Bearing Reference is like a key for financial institutions to fetch a customer’s KYC details from the repository. Whenever the documents are required in the document verification process, the entity can use this key to fetch the details.

When the customer completes the KYC process with a financial institution, their details are uploaded to the CKYCRR. After the submission, the system generates a record bearing reference. This reference number is then shared with the customer and used across banks, insurance, companies, and other financial entities for verification purposes.

This number simplifies the customer onboarding process and enhances data accuracy. It is beneficial for the customers as it eliminates the resubmission of documents.

Importance of CKYCRR in Banking

Here are the key reasons why it is important in banking:

• Unifies KYC Database: CKYCRR is a centralized database, where banks and financial institutions update customers’ KYC data. This unified database eliminates the need to undergo KYC repeatedly as the bank can fetch KYC data from the repository.

• Enhanced Customer Experience: It benefits the customer because once their KYC information is recorded in the central database, the data can be accessed by various financial entities during the customer onboarding process, saving time and effort.

• Prevent Fraud: Centralized data helps identify risks and prevent fraud. Financial institutions can verify the authenticity of customer information in real-time.

Benefits of CKYCRR

Central KYC Record Registry offers several benefits:

Simplify the KYC process with one-time document submission: It eliminates the need to resubmit documents repeatedly across institutions for the KYC process.

Compliance with PMLA regulations: It ensures that banks and financial institutions follow laws such as PMLA, preventing money laundering and fraud.

Offers Centralized Data Repository: It is a centralized database that provides verified customer KYC data.

Instant Notification of KYC Updates: Institutions are instantly informed whenever a customer’s KYC details are updated.

Gives Universal Access: It allows customers to access financial services from various banks using a single KYC registration.

Reduces Data Breach: CKYCRR offers a secure database that reduces the risk of unauthorized access and data breaches.

CKYCRR 2.0 Update

CERSAI is going to launch CKYCRR 2.0 with advanced systems and technology. This version will solve issues like limited access and flexibility. It is made to fulfill the needs of new financial services such as Fintechs and Neobanks. CKYCRR 2.0 makes it easier for the customer to manage and share their KYC information securely with various banks and financial institutions without the need to repeat the process. This system will use advanced blockchain technology for security. Overall, CKYCRR 2.0 will make the financial system more secure and efficient.

Conclusion

CKYCRR is an important part of the financial ecosystem, it simplifies the know-your-customer process. With its centralized data, it makes the KYC process easy and efficient. It adds benefits such as enhancing customer experience, reducing the risk of fraud, and supporting financial inclusion.

FAQs

What is the meaning of CKYCRR?

CKYCRR is a centralized database where customers’ verified KYC documents are stored. It enables easy data sharing with new institutions without requiring document resubmission.

What is CKYCRR Full Form in Banking?

The full form is Central Know Your Customer Record Registry.

What is the CKYCRR Record?

CKYCRR record refers to customer KYC information saved in the Central KYC Records Registry.

What is the CKYCRR Bearing Number?

It is a unique identifier used to access a customer’s KYC details from the CKYCRR.