Know Your Customer (KYC) is a mandatory process of identifying and verifying a customer’s identity when they enter into any transaction with a financial organisation. From investments to loans to managing accounts, regulatory bodies mandate to record this information to confirm and maintain customer records for all future transactions.
But KYC is also limited in its current form, requiring massive manpower, time investments and repetitive forms as customers file multiple applications for a single financial transaction. A customer, for example, ordinarily must file a KYC with one institution to open an account – and then repeat the process should he/she need to transact with a different financial organisation. This repetitive nature of the KYC process slows down the onboarding process, drives up the overhead costs and lacks quality control. For both, the customer and the financial organisation, the process is time consuming, slow and frustrating as databases are updated individually for even the most trivial changes in the customer information.
Central Know Your Customer (CKYC) is a regulatory initiative instituted by the Reserve Bank of India (RBI) to address exactly these problems. Under the new guidelines, people looking to initiate a financial relationship would simply fill one KYC document, either personally, through agents or using services in the case of larger companies. This single document will be managed by the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) as mandated by the Govt. of India, allowing them to maintain a centralised databank of the latest customer information. When that customer then wants to conduct a financial transaction with a new partner – his/her details are automatically accessed and processed via this CKYC registry, ensuring compliance and speeding up the process significantly.
Any changes or updates to this document by the customers will also reflect in their CKYC record, allowing them to update their information across the financial sector without the duplication of efforts. CKYC, in one convenient move, will therefore save financial institutes and their patrons both money and time through the automation of KYC tasks.
Your path to easy compliance begins with CKYC process automation and BPO
Crown Records Management has been a central kyc registration agency partner to many leading financial organisations, extending its expertise with a range of offerings to ease the burden of due process for thousands of customers across the globe. This now includes assisting your company with CKYC applications and onboarding processes. Your digital transformation will begin with the digitisation of legacy documents (essential for CKYC!), and other onboarding processes tailored to your convenience. We offer two options when it comes to updating your CKYC information with the central registry:
- A one-time project where we update and digitise your records in compliance with CKYC and CERSAI regulations.
- On an ongoing basis, wherein Crown will constantly update and maintain documents pertaining to CKYC to ensure easy compliance.
Prudent financial decisions begin with understanding the processes behind them. Crown’s BPO and automation process is transparent, efficient and meticulous – ensuring compliance and digitisation of your records take place without any hassle.
Below is a complete informative breakdown of the process in their order of execution:
- Scan – As per mutually decided Standard Operating Procedure, our team can establish a scan station at the client branch. Alternatively, the client can use its team to scan application forms, along with Proof of Address (POA) and Proof of Identity (POI). After completing the scanning activity, these images can be transferred to our Centralised Processing Centre through dedicated Secure File Transfer Protocol (SFTP) along with data sheets of each application form in the prescribed format.
- Filter / De- Duplicate – After the scanned images arrive at our centre, we will browse the institution’s master records to check if CKYC process is already performed for a particular customer ID.
- Auto-identify / Crop – With the help of a dedicated offline tool, we will process the remaining records (which do not have a CKYC ID) to identify photo, POA and POI automatically and crop them as per prescribed dimensions from CERSAI.
- Data Entry – Process starts with data entry for each record, which can either be imported from the institution’s master records or can be done manually. This process is done using our web-based tool which then creates an individual zip folder for each application form as prescribed by CERSAI.
- Quality Check – A Quality-check (QC) is performed for each record to ensure that all images are scanned and cropped following CERSAI guidelines. If a record fails to meet the QC norms, it is sent back for re-scanning or data entry.
- Approve – upload – All the records processed are approved for batch upload. The system will then generate flat files and zip files following guidelines provided by CERSAI. A digital signature is applied on the day’s batch and the ready files are pushed to CERSAI’s SFTP location.
- Download Report – The reports can be downloaded after the data is uploaded to CERSAI’s SFTP location.
Features of our CKYC Registration process automation
Some of our salient features include:
- Accurate document parsing– Documents and images are scanned using advanced technologies like Intelligent Character Recognition (ICR) and Optical Character Recognition (OCR). This helps accurately parsing information that needs to be updated on the CKYC portal.
- Automated CKYC onboarding process– Our solution accurately parses information, resizes images and uploads information according to the CERSAI norms. Multiple CKYC records can be uploaded in a single go using bulk upload
- Secured data transactions- All transactions are quality checked as per CERSAI norms. CKYC processing and uploads can be carried out at your location with your team members.
- Audit trail reports / Audit Management- All the CKYC uploads and revisions are tracked, and audit reports are maintained for future audit evaluations.
CKYC process automation and BPO offers several benefits in terms of improving the efficiency of the operations:
- Save time – Reduce CKYC turn-around-time from 7 days to 1 day
- Save costs – On infrastructure, integration and operations
- No minimum billing – charged per CKYC processed
- Intuitive, intelligent, and self-evolving solution – the solution is updated in line with changes to regulatory procedure
- Quality and data hygiene checks by digital technologies
- Reduces risks and errors
Get in touch with our experts
CKYC is a mandate meant to simplify the process of compliance and application across the financial industry. Crown offers its expertise in the form of services to help you and your company ease the process of updating your data, offering end-to-end digital solutions that cover compliance and allow you to focus on the things that matter more – savvy investments and your financial strategy and well-being.