What is CKYC Full Form in Banking?
The CKYC full form in Banking is Central Know Your Customer. It serves as a centralized storehouse of KYC records of customers for getting various financial services across the institutions like the banks, insurance companies, non-banking financial corporations, etc. For financial institutions, the new streamlined process of CKYC has eliminated the hassles that are associated with on boarding customers through a number of KYC verifications.
What is the information collected by CKYC?
The CKYC collects relevant information such as personal details, PAN numbers, address proof, bank account information, and so on. After the customer’s records have been validated against existing documentation supplied to the Central KYC repository, they will be given a unique 14-digit Aadhaar-based identification. This establishes a centralized consumer information database that all financial institutions can access.
Features of CKYC:
It assigns consumers a single, uniform KYC number that corresponds to their ID proof. This ensures that any documentation relating to an individual’s identity may be quickly accessed and validated using this unique identifier. All client information is electronically recorded in the CKYC database for quick access by approved institutions. This eliminates the need for physical storage and guarantees that only appropriate personnel have access to personal information.