by which KYC procedures can be simplified, and as the documents are mostly common why one single documentation not be used by multiple entities? Don’t know when, but I fell asleep and was woken up by the mobile alarm. It was a Monday morning and I was back to the office. The first thing that came to my table was a request for sanctioning expenses for sending registered notices to our KYC noncompliant customers requesting them to update their records and if they fail to do so the bank will be, as per RBI guidelines constrained to freeze operation in their accounts. Without even a blink of the
eye, I sanctioned it. After all, we have to wear multiple hats!!! The changing scenario During the recent weeks, there have been certain developments which can significantly change the landscape regarding submission and verification of KYC documents to banks and other financial institutions. Some of you might have guessed it right. I am referring to the operationalization of a Central KYC registry(CKYC) for banks, insurance companies, mutual funds and other entities in the financial sector. Central KYC Registry is a centralized repository of KYC records of customers in
the financial sector with uniform KYC norms and inter-usability of the KYC records across the sector. This means that a single KYC will suffice to invest in all financial products, including banking, insurance, mutual funds and pension products. Though this was originally announced in the Union Budget 2012-13, it has been made operational only now. The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) was entrusted with the task of setting up the Central KYC Registry. CERSAI has appointed DotEx International Limited, a NSE group company, as
Sept-Oct 2016
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