CKYC (Central KYC): Needed For Mutual Fund Investing

ckyc

What is CKYC?

CKYC stands for Central Know Your Customer. Starting Feb 1, 2017 – anyone investing in mutual funds will have to go through CKYC process.

From the website:

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.

Why Central KYC?

Earlier customers had to do different KYC for different purposes – opening a bank account, buying an insurance, investing in mutual funds etc. With CKYC, this will have to be done just once. CKYC will replace all other KYC processes.

how things change with ckyc

Features

  • CKYC will have a unique KYC identifier – 14-digit KYC Identification Number (KIN) or a CKYC number -linked with ID proof. You can use this to invest in mutual funds or to purchase any financial product.
  • KYC data and documents stored in a digitally secure electronic format.
  • ID authentication with issuing authorities like Aadhaar/PAN.
  • Institutions will get real-time notifications on any changes in KYC details

How do I get CKYC?

For investing in mutual funds, you can get it done in two ways:

  1. Ask your MF distributor
  2. Go directly to mutual fund company (AMC)

You can also get it done your self by going to Registrar (CAMS) office and submit documents. You will have to fill a form (similar) to KYC process earlier and provide supporting documents like PAN, Address Proof and Identity Proof. One extra field that Central KYC needs is your Mother’s name.

List of documents needed for CKYC

  1. Filled form – here is link to the form
  2. PAN Card
  3. Identity Proof – passport, driver’s license, aadhar card, voter id etc are valid proofs
  4. Address Proof – passport, driver’s license etc are valid proofs

Once you provide the document to your distributor or CAMs, they are uploaded to CKYC platform.

For existing mutual fund investors

As of now, existing mutual fund investors do not need to get CKYC – they can keep investing with existing KYC. However, this can change later.

You can check if you are KYC verified or not by following these steps:

1. Visit cvlkra.com

2. Click on the KYC Inquiry link on the header as shown in the figure below

check your central kyc

3. Provide your PAN details or provide other details and click submit.

You will get to know if you are KYC verified or not. If your KYC is under process, it will show that as well.

How to check your CKYC Number?

You can check your CKYC number from CVL or Karvy. Here is the process for finding your CKYC number:

  1. Visit Karvy website find ckyc number
  2. Punch in your PAN number and Captcha
  3. You will see your CKYC number as shown in the image below ckyc status number karvy

Difference from eKYC

First-time investors can also start investing by doing eKYC. eKYC is done using Aadhaar Number and is 100% paperless. Customers need to provide their consent to read Aadhaar data using an OTP (one-time password).

However, there is a limitation of Aadhaar-based eKYC – Investors can invest only up to Rs 50,000 per annum per fund house. Investors who want to invest more after the limit need to do CKYC.

Start paperless investing