Rise in fraudulent activities due to the digitization revolution has been a challenge for the business world during the last decades. Imposters found new and sophisticated ways to deceive organizations techbloody. According to a report published by Statista Research Department on Sep 26, 2023, more than 31000 scam cases were reported in Singapore during the year 2022.
This year-to-year rise in online fraud is alarming. Kolkata FF Fatafat Businesses can face financial and reputational losses or even huge penalties or fines. To protect businesses from these damages, all businesses need to implement Know Your Customer (KYC) regulations. This blog will explore how central know your customer can benefit businesses and customers to safeguard against fraud, identity theft and other illegal activities by simplifying the Know Your Customer(KYC) process.
What is cKYC?
Central Know Your Business ( is a centralized database that contains the KYC records of all the individuals that are availing of financial services through any financial institution. It was first initiated by India in the year 2017.
It allows individuals to open an account, invest, Kolkata Fatafat purchase insurance, or entertain any other financial service without repeating the KYC process. By centralizing customer informationhelps organizations make the KYC process simple and easy.
Difference Between KYC And cKYC
Know Your Customer(KYC) is a process that is carried out by organizations to comply with the regulations of anti-money laundering (AML) and countering terrorism financing (CTF).
KYC verifies the identities of customers by authenticating their identity documents. These documents can be submitted digitally. On the other hand, cKYC is a repository of KYC records. When the documents of an individual are submitted through a KYC process, they are registered in the . The individual is granted a cKYC number for further transactions.
Now, when an individual wants to carry out any Kolkata FF transaction with any other financial institution, he can submit this number for KYC verification instead of going through the whole process once again. In the same way, financial institutions can verify the identity of individuals by accessing registry, without going through any KYC process.
How Does cKYC Process Work?
The complete cKYC process is executed by an authorized cKYC service provider or financial institution. These service providers offer businesses an intensive and automated solution. This solution carries out the cKYC process efficiently performing the following tasks.
- Gathering Information
Personal information about customers is gathered by the service provider. It includes name, address or identity card number.
- Submitting Documents
Documents, such as identity cards, passports, or driving licenses are submitted as proof of identity and address to the service provider. A photograph and some other documents may be required for verification purposes depending upon the nature of the service or product being availed.
- Verification Process
Information and documents provided by customers are authenticated and verified under the KYC and AML compliance by service provider.
- Issuance of cKYC number
Customers will receive a specific cKYC number from service provider. This number can be used by individuals for KYC purposes in future across all the financial institutions.
How cKYC Benefits Businesses?
Implementation of an efficient solution can Kolkata FF Results improve the productivity and credibility of businesses drastically. The following are some other benefits catered by cKYC.
Improve Customer Experience
cKYC ensures that the data stored in the registry is secure, and the investors do not need to go through the KYC process again and again for different financial transactions. It is convenient and time-saving as customers have to submit documents only once. This improves the customer experience and builds their confidence.
Increase Protection Against Fraud
Under strict KYC checks, cKYC protects both businesses and customers against identity theft, fraud, and other criminal activities.
Streamline Onboarding
It makes the onboarding process simple, quick and free of repeated KYC verifications.
Better Data Management
makes it easier for financial institutions to access and manage KYC records of customers, resulting in better data management.
Cost And Time Saving
Financial institutions and businesses can save their time and money for performing KYC checks again and again by leveraging the Central Know Your Customer (cKYC).
Summing Up
cKYC is crucial for businesses to eliminate the cost and time spent on repeated KYC processes for the same customer. It provides a centralized error-free database for the KYC records of customers, minimizing efforts for managing the data. Complying with the regulatory laws of KYC and AML, it mitigates fraud, corruption and money laundering. Individuals can avail the opportunity to invest in different areas like mutual funds, the stock market, and insurance plans, using only a 14-digit cKYC number. This is the first step towards one-time KYC in this digital era.
