Submit KYC documents just once for all account opening

Soon, completing know-your-customer (KYC) requirements with one bank will be good enough for opening an account with any bank, mutual fund, insurance company or any other financial institution. The RBI and the Insurance Regulatory and Development Authority of India (IRDAI) have asked banks and insurance companies to upload KYC documents relating to new accounts to a central server from July 15. 

Besides the RBI and the IRDAI, markets watchdog Sebi too is collaborating in the programme. This will facilitate mutual funds, brokerage firms and depository participants to offer services without asking customers to provide multiple KYC undertakings. The government had authorized the CERSAI (Central Registry of Securitisation and Asset Reconstruction and Security Interest of India) to perform the job of a central KYC registry . CERSAI, which was created in 2011 to prevent frauds in lending, will be hosting the central KYC registry server. By registering a lender's interest in an asset, it prevents fraudulent borrowers from using the same asset to obtain multiple loans. 

When the KYC records are uploaded in the registry for the first time, it will generate a 14-digit KYC identifier. When any customer with a KYC identifier wants to open a new account with any financial entity , all he has to do is submit the number.The institution has to merely pull down the KYC records from the central registry to open the account. The RBI has made it mandatory for banks to upload KYC documents for new accounts from July 15. 

Reference : Economic Times