Govt has asked Banks to use CKYC number for Verifying Customer Identity
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The Indian government is encouraging all financial institutions and regulators to use the Central Know Your Customer (CKYC) number as the main reference for verifying customer identity. This move is aimed at making the entire KYC process faster, more efficient, and uniform across the financial sector.
What is CKYC?
CKYC stands for Central Know Your Customer. It is a central system managed by the Central Registry of Securitisation and Asset Reconstruction and Security Interest of India (CERSAI). Once a person completes their KYC with any financial institution, their details are stored in this central database and they are assigned a unique 14-digit CKYC number.
Why is the Government Promoting CKYC?
- Avoid Repeating KYC: Once your KYC is done and stored in the CKYC system, you don’t need to submit documents again for other financial services like opening a bank account, buying insurance, or investing in mutual funds.
- Easy Customer Onboarding: Banks and other financial institutions can simply use your CKYC number to access your verified details and onboard you faster.
- Save Time & Paperwork: It reduces the need for customers to keep submitting documents multiple times to different institutions.
CKYC by the Numbers (as of May 31, 2025)
- Over 103 crore Indians have their KYC data registered in the CKYC system.
- CKYC downloads have crossed 149.76 crore, meaning institutions are actively using the central records to verify customers.
- The number of KYC updates (revisions to existing records) has increased from 0.51 crore in 2019 to 33.84 crore in 2025 — a 65-times growth.
- The number of KYC uploads jumped from 10.13 crore in March 2019 to 102.82 crore in May 2025 — a tenfold rise.
Who’s Using CKYC the Most?
Here’s a breakdown of how different sectors are using CKYC data:
| Regulator | Number of CKYC Downloads |
|---|---|
| RBI-regulated entities (Banks, NBFCs) | Over 122 crore |
| IRDA-regulated entities (Insurance) | Over 16 crore |
| SEBI-regulated entities (Stock Market) | Over 11 crore |
| PFRDA-regulated entities (Pension) | Nearly 44 lakh |
Legal Backing
Under the Prevention of Money Laundering Act (PMLA), the inter-use of KYC records through CKYC is legally supported. This means that one institution can use KYC data verified by another, as long as it’s recorded in the central system.
What This Means for You
- You just need to do KYC once and use your CKYC number everywhere.
- Financial institutions won’t ask you for the same documents again and again.
- Onboarding for services like loans, insurance, or investment becomes quicker.
Conclusion
The government’s push to make the CKYC number the standard for all customer verifications is a major step towards creating a seamless, paperless, and faster financial ecosystem. With strong legal support and massive adoption already happening, CKYC is on its way to becoming the backbone of digital identity verification in India.
