What is CKYC?
The central KYC records registry.
A central repository of KYC records maintained by CERSAI, so a customer verified once by one regulated entity need not be re-verified from scratch by the next. A lender both searches it and uploads records to it.
Why does CKYC matter?
It is the difference between onboarding a customer who already exists in the system and onboarding them again. For a lender whose borrowers hold accounts elsewhere — which is most of them — the search is the cheaper half.
What the regulations say about CKYC
CKYC exists because the Prevention of Money-laundering (Maintenance of Records) Rules require a regulated entity to file the KYC records of every new account with the Central KYC Records Registry, and to fetch an existing record where the customer already has a KYC Identifier. It is an obligation on the lender, not a convenience: the filing is due whether or not the lender chooses to search first.
What a lending system has to do about CKYC
KYC lives on the party record rather than the loan file, so a second loan starts from what has already been verified. The CKYC XML is generated by the system; submission to CERSAI is a manual upload, because there is no public API to submit it through, and we would rather say so than describe an automation that does not run.
Related terms
- CIC (credit information company) — A credit bureau.
From the people who wrote this
Run your lending on Lenviq
The section above describes what a lending system has to do about this term. Lenviq does it — on every account, computed at day-end, with the direction it comes from recorded against it.
Lenviq is loan origination, servicing and accounting for NBFCs, built by FastLegal Technologies.