CKYC: Everything You Need to Know About CKYC Number
CKYC or Central Know Your Customer, is a term that is prevalent in the investment world. A CKYC number is a unique identification number that is assigned to an investor after the CKYC process has been completed. The main purpose of a CKYC number is to facilitate uniformity and a centralized process of maintaining and managing Know Your Customer (KYC) information in the Indian financial sector.
The Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) manages the CKYC process. Previously, every time an investor wanted to invest in a mutual fund, bonds, stocks or open an account at a bank, a separate KYC process was mandatory. This often led to a lot of inconvenience. However, with the introduction of CKYC, a person needs to complete the KYC process only once across all financial segments and intermediaries.
CKYC Number
The Central KYC (CKYC) number is a unique identifier issued to individuals in India who have completed the KYC (Know Your Customer) process centrally. CKYC aims to streamline the KYC procedure across financial institutions, making it more efficient and less repetitive. Once an individual completes their KYC with a financial institution, their details are stored in a central repository managed by the Central Registry of Securitization Asset Reconstruction and Security Interest (CERSAI). This number helps eliminate the need to repeatedly submit KYC documents for different financial services, thus enhancing convenience and security for customers.
The CKYC number is a standard 14-digit number provided to the investor after completion of the CKYC process. For instance, if you invest in Mutual Funds, Bonds, Stocks or any other security, you will only need this single number for all your investment purposes.
How to Apply for CKYC?
Applying for a CKYC number is a relatively simple process. The investor needs to fill up a CKYC form that is available on the websites of mutual funds or Central KYC Registry. The duly filled form must be accompanied by identity proof, a passport size photograph and address proof such as a Passport, Driving License, Aadhar card, Voter ID, etc.
Once the form is submitted and verified correctly by the financial institution, the investor will receive a CKYC Identification Number (CIN). Post that, the investor can give this number for KYC in all his/her future investments.
How to Activate KYC in UAN?
If you’re wondering about how to activate KYC in the Universal Account Number (UAN), it’s a straightforward process. KYC in UAN can be updated by logging in to the UAN portal with the UAN number and password after which you can update the KYC details under the ‘Manage’ tab. Remember that updating KYC details is important for seamless transactions and for facilitating communication between you and EPFO.
Implementation of CKYC has made the KYC process significantly effortless. With the ambitious goal of uniting different financial segments under a single umbrella and making the investment process hassle-free for the investor, CKYC can be hailed as a revolutionary process in the Indian financial sphere.
However, it is crucial to mention that while CKYC has undoubtedly eased the process, every investor must do their due diligence and fully comprehend the ramifications of trading in the Indian financial market. No matter how simplifying these processes may be, the potential for monetary loss can never be ruled out entirely due to the volatile nature of the stock market.
Therefore, it is highly recommended, to consult with a financial advisor or conduct thorough personal research before making any substantial financial decisions. The investor must gauge all the pros and cons meticulously before proceeding.
How to add KYC in EPFO
Adding KYC (Know Your Customer) details in EPFO (Employees’ Provident Fund Organisation) is a straightforward process. To ensure smooth transactions and accurate account management, follow these steps: First, log in to the EPFO member portal using your UAN (Universal Account Number). Navigate to the ‘Manage’ section and select ‘KYC.’ Here, you can upload your KYC documents such as Aadhaar, PAN, and bank details. Ensure that the details are correctly filled and submitted. After updating, how to add KYC in EPFO will be reflected in your account once verified. Keep track of the status on the same portal to ensure completion.
Summary:
A CKYC number is a unique 14-digit number provided to investors once they complete the Central Know Your Client process. This number eliminates the need for undergoing a KYC procedure every time an investor wants to make a new investment, therefore making the investment process more streamlined. Moreover, activating KYC in the Universal Account Number (UAN) can easily be done through the UAN portal, ensuring seamless transactions and easy communications. However, despite these simplifications, every investor must make informed decisions and gauge all pros and cons before investing in the Indian financial market considering its risky and volatile nature.
Go to Home