Knowledge Centre/NRI Corner

All You Need To Know About Central Know Your Customer (c KYC)

Central Know Your Customer (c KYC) is a centralized depository of KYC records of customers across financial market segments. As per c KYC norms, a customer once KYC-registered with any financial entity, need not enter a KYC norm again.

With uniform KYC norms, the c KYC allows financial markets like banks, NBFCs, mutual funds, etc. to access customer information stored in the central registry.

Who Can Access c KYC Norms?

Launched by Central Registry of Securitization and Asset Reconstruction and Security Interest in India (CERSAI) in July 2016, the c KYC allows inter-usability i.e. usage of common data. Thus, it reduces the burden of verifying the KYC documents every time. A person registered with c KYC can invest in any financial product without again registering for a KYC.

Authorized institutions/notified institutions under the Prevention of Money Laundering Act or rules framed by the Government of India or any Regulator like SEBI, RBI, IRDA, and PFRDA, can access the central KYC information.

The Main Functions of c KYC Program Include:

  • Electronically storing, safeguarding, and retrieving the KYC records
  • Making records available online to reporting entities
  • Updated customer information is disseminated on request to reporting entity
  • Reporting entities can avail the c KYC services on payment of prescribed fee.
  • If a reporting entity shares the KYC records of a customer, the c KYC processes it for de-duplication and issues a unique KYC identifier of each customer.
  • The de-duplication is done on the basis of the demographics. 
  • Ensures the integrity of the electronic systems. Takes precautions so that the records are not lost, tampered or destroyed.
  • Creates backup and prevents unauthorized access to KYC database.
  • ID authentication with issuing authorities like Aadhaar/PAN etc. 

Documents Required For c KYC Registration

Customers have to ensure to give the right details and documents for KYC registration. Documents like Aadhar card, PAN card, bank account statement, voter ID or Passport are needed for registration. Learn why KYC is important for you.

In conclusion, the c KYC program offers an immense benefit for the customer or investor and the financial institution, by saving a huge time and effort in the process. Unlike before, where an investor had to share documents during every financial investment, c KYC registration is a one time process. Get registered with c KYC through SEBI-registered financial planning services company.


All You Need To Know About FATCA

You must have received an email or a letter from your mutual fund (MF), if you have been investing in MFs, asking for some details. If you haven’t yet received such communication, you might receive a letter or email shortly. Your fund house wants to know if you pay taxes or have tax residency in any other country as well. Here’s why:


Due to a new Act called the Foreign Account Tax Compliance Act (Fatca), which was passed in the US in 2010, financial institutions in many countries are required to disclose details of their clients’ income, and if they are either residents of the US or financially connected to the US or have any tax residency in US. US residents could either be citizens or green card holders. The rule was enacted to prevent tax evasion through offshore investments that some residents may have.


The US has for long required its residents to disclose all their international income as well. But since such voluntary disclosures did not take place at the pace that was needed, the US then enacted the Fatca law, whereby the US government decided to put the onus on companies and firms around the world to get this information. To that effect, it has so far signed Inter Government Agreements (IGA) with more than 50 countries, including India, making it mandatory for these countries’ financial institutions, such as banks, insurance companies and mutual funds, to furnish details of clients or investors who are based in the US. If the firms refuse to cooperate, the Act allows the US government to deduct 30% tax from these companies if they are already registered or doing business in the US.


According to the Fatca guidelines, this information needs to be collected only from those investors who have opened “accounts” on or after 1 July 2014 or if they have an account as on 30 June 2014 wherein the value of investments is above $50,000. “Accounts” here mean folios in MF parlance. The details asked are very basic. All your fund house needs to know is your country of birth, the country in which you live (yes, most of you will say India), and whether you pay taxes in any other country apart from India.

For instance, you could have stayed in the US for some years or might be a US citizen living in India for some years now, but paying taxes in both countries. If you have been paying taxes in any country apart from India, you need to provide the tax identification number or any such number equivalent to the Permanent Account Number (PAN) here.

Some fund houses have already started reaching out to investors directly. Some have started contacting distributors who have been tasked to provide information. Therefore, distributors may come and ask you or revert to fund houses directly if they have enough proof that their clients have no connection to the US.