Following the regulatory directive from the Govt. of India, all financial organizations are required to update Central Know Your Customer (CKYC) records of their customers on the Central KYC Record Registry (CKYRR), managed by Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI).
The Central Know Your Customer (CKYC) registry is a centralized database that maintains the KYC (know your customer) records of individuals and entities in India. CKYC is important for banks and non-banking financial companies (NBFCs) because it helps them comply with anti-money laundering and combating the financing of terrorism (AML/CFT) regulations.
By using the CKYC registry, banks and NBFCs can access the KYC records of their customers and verify their identity, address, and other details quickly and efficiently. This helps to reduce the risk of fraud and other financial crimes and makes it easier for banks and NBFCs to onboard new customers and manage their existing relationships.
According to the Reserve Bank of India (RBI) directives, those customers who have completed C-KYC that is maintained by the CERSAI, need not do a KYC again, thereby, obviating the redundant practice of repeated customer verification and documentation while applying for financial products across the regulated financial ecosystem.
Not only this enables financial companies to verify documents with ease but once registered, an investor need not submit KYC documents before availing any financial service. CKYC, therefore, works to the benefit of both the customers as well the financial companies.
Financial Institutions registered under RBI, Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI) and Pension Fund Regulatory and Development Authority (PFRDA) can register their customers under CKYC. When an individual purchases any financial product from any of the financial institutions regulated by RBI, SEBI, IRDAI or PFRDA, these financial institutions will register the individual’s KYC details with the Central Registry of Securitisation and Asset Reconstruction and Security Interest of India (CERSAI).
The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) is another national level registry that maintains records of all transactions related to security interest. CERSAI KYC is important for banks and NBFCs because it helps them manage and track the security interests they hold in various assets, such as loans, mortgages, and other financial instruments.
By using CERSAI, banks and NBFCs can easily identify and track the assets that are pledged as security for loans and other financial instruments. This helps them to manage their risk and ensure that they are able to recover their loans in case of default.
Overall, CKYC and CERSAI are important for banks and NBFCs because they help them comply with regulations and manage their risk in a more effective and efficient manner.
Requirements for NBFC registration with CERSAI
To register your non-banking financial company (NBFC) with CERSAI, you will need to meet certain requirements and follow a specific procedure. These are:
- The NBFC should be registered with the Reserve Bank of India (RBI).
- The NBFC should have a PAN (Permanent Account Number) and a valid TAN (Tax Deduction and Collection Account Number).
- The NBFC should have a valid Certificate of Registration (COR) issued by the RBI.
- The NBFC should have a digital certificate for secure electronic filing with the Ministry of Corporate Affairs (MCA).
Procedure of NBFC registration with CERSAI
- Go to the CERSAI website and click on the “Registration” link.
- Select “NBFC” from the drop-down menu and click on the “Proceed” button.
- Fill out the online registration form and upload the required documents, such as the COR issued by the RBI, the PAN and TAN of the NBFC, and the digital certificate issued by the MCA.
- Submit the form and pay the fees online.
- Once the registration process is complete, CERSAI will issue a unique registration number to the NBFC. This number should be used in all future transactions related to security interest.
The Government of India has prescribed forms for CERSAI registration for NBFC as follows:
| Process for Registration | Prescribed Forms |
| For creation and modification of Charge (only immovable property) | FORM I |
| For particulars of Satisfaction of Security Interest | FORM II |
| For Reconstruction or Securitisation of Assets | FORM III |
| For Satisfaction of Securitisation or Reconstruction of Assets | FORM IV |
The CERSAI registration for NBFC is mandatory for all financial institutes to file records with the central registry (database) created in their favour whether or not they are notified under the SARFAESI Act 2002.
How does Crown help Financial Industry players in CKYC compliance?
The goal of the Central KYC is to provide a platform that allows investors to complete their KYC only once before interacting with financial services firms. Completing manual CKYC, for example, takes 30 minutes per client profile, with all the hazards that come with manual entry.
Crown’s CKYC service helps streamline operations and provides customers with real-time, easy, and secure onboarding. Our skilled team guarantees that documents are handled and processed swiftly, while according to CERSAI requirements. Our CKYC service scans and recognises documents using advanced digital technologies such as Machine Learning, allowing for exact data processing. Intelligent Character Recognition (ICR) and Optical Character Recognition (OCR) ensure that handwritten data on KYC forms are recorded. Our technology gathers information and images reliably, generates data, and uploads several entries at once. We designed the service to meet the demands of businesses, allowing you to focus on gaining and serving more clients rather than worrying about onboarding.
Your application procedure is made simpler by the customised CKYC solution from Crown Records Management. The CKYC solution from Crown Records Management completes the process by utilising machine learning. Information can be automatically captured with the use of features like Intelligent Character Recognition (ICR) and Optical Character Recognition (OCR). Automated CKYC onboarding, precise parsing, secure data transactions, audit trail report, audit trail management and more are provided by the solution.
At Crown, we are fully aligned with the needs of CKYC registration and ready to ensure that you and your customers have safe and secure financial transactions.
To know more about our CKYC automation and BPO solution, write to us at sales.in@crownrms.com or speak to our consultants at +91 8882 330 330.
