With the rise of financial fraud, it's become critical to preserving accurate customer records to track any questionable activity. CKYC regulations were enacted to prevent the financial sector from being ruined by unlawful activity. This aids in gaining a deeper understanding of the customer. It also contributes to the investment's safety.
KYC has been replaced by CKYC (Central Know Your Customer). Earlier KYC regulations included distinct KYC formats for different institutions. With the launch of CKYC, the customer will no longer be required to go through the KYC process with any other institution. Characteristics of CKYC The CKYC registry allows financial institutions to skip the long onboarding process. They present all pertinent information on the buyer in a single window. It also helps to save a lot of time and effort. Opening a bank account was a nightmare before CKYC was implemented. One had to gather documentation to meet the financial institution's requirements. It requires a lot of effort and time. However, if you want to invest in another financial institution, you must undergo the same documentation process. As a result of the introduction of CKYC, the customer no longer has to go through the same documentation anguish. The information is kept in one location. This information is also available to authorize financial institutions. It saves time and effort for both the customer and the banking institution.
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About Author:Aman is working in the domain of Investment management in one of the top universities. He has published research papers and case studies in Investment and Fixed Deposit marketplace. He is an avid blogger in the domain of Investment management. you can also find him on social networking platforms. Archives
August 2022
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