Common customer ID for banks, insurers soon; mutual funds to follow
India will launch the Central Know-Your-Customer 2.0 (CKYC) system for banks and insurers in August, enabling institutions to retrieve verified customer data with consent from a central registry. Asset managers such as mutual funds and brokerages are expected to join later in the year once sector‑specific rules are finalized. The initiative aims to simplify onboarding, improve data quality with confidence scores, and expand participation in financial products beyond basic banking inclusion.
- ▪The CKYC 2.0 platform will go live for banks and insurers in August, allowing them to access customer records from a Central Registry with a one‑time password consent.
- ▪The Central Registry currently holds about 1.2 billion records, and the new system will attach a confidence score to each record to indicate data accuracy.
- ▪Mutual funds, brokerages and other capital‑market firms are slated to adopt the system later this year after regulators define sector‑specific requirements.
- ▪India’s financial inclusion is high for bank accounts at 89% of adults, but ownership of mutual funds, insurance and pensions remains relatively low, prompting the push for a universal ID framework.
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Banks and insurers will launch a common customer identification system in August, with asset managers joining later, two regulatory sources and industry executives said, allowing customers to access financial products without separately submitting identification documents.The new system, known as Central Know-Your-Customer 2.0 (CKYC), will only require the customer’s consent for these institutions to fetch data stored at a Central Registry when opening an account or updating their details.
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