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In today's era, it is necessary to get KYC done for investments or transactions in banks, mutual funds, insurance, pensions, etc. However, the process of getting KYC done separately with every institution has become very difficult and time-consuming for people.

To end this problem, the government had announced to start of a new system of Central KYC or CKYC in Budget 2025-26. Through this, investors and customers will not need to get KYC done again and again and the whole process will be very easy.

The Ministry of Finance, SEBI, and other regulatory bodies are working together to make it safe, transparent, and easy. At present, its digital platform is being prepared and soon the CKYC system is expected to be implemented across the country.

What is CKYC and how will it work?

CKYC is a digital platform, where all the KYC information of the customers will be kept secure in one place. Customers will be given a unique KYC ID, which will be linked to their Aadhaar Card or other identity document (ID Proof).

Benefits of CKYC
Time-Saving: You will not have to get KYC done at different places again and again. With this ID, any financial institution (Bank, Mutual Fund, Insurance, etc.) will be able to access your KYC data.

Only one KYC record will be created for a customer, which will reduce the possibility of data duplication or fraud.

In this process, AI-based face-matching technology will be used, due to which the identity of the customer will be completely verified.

Customers will also be able to see their KYC records themselves and know who used their data, when, and how.

Cost Effective: Saving from KYC fees for different institutions.