OPERATIONALISATION OF CENTRAL KYC REGISTRY (CKYCR) AND KYC NORMS FOR FOREIGN
PORTFOLIO INVESTORS (FPIS)
RBI has made (July 8, 2016) the following amendments in KYC directions:
1. Customer Due Diligence Procedure and sharing KYC information with Central KYC Records Registry
(CKYCR): Regulated Entities shall capture the KYC information for sharing with the CKYCR, as required by
the revised KYC templates prepared for ‘individuals’ and ‘Legal Entities’ as the case may be. Government of
India has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India
(CERSAI), to act as, and to perform the functions of the CKYCR vide notification dated November 26, 2015.
The ‘live run’ of the CKYCR would start with effect from July 15, 2016 in phased manner beginning with new
‘individual accounts’. Accordingly, REs shall take the following steps:
1. In the first phase, Scheduled Commercial Banks (SCBs) may upload the KYC data with CERSAI, in
respect of new individual accounts opened on or after July 15, 2016.
2. REs other than SCBs may also participate in the live run of CKYCR from July 15, 2016.
3. Those REs which are not yet ready to join CKYCR
process immediately, shall take steps to prepare their systems for uploading the KYC data in respect of
new individual accounts so that the same is complete as soon as possible in a time bound manner.
4. REs shall prepare a plan for uploading the data in respect of existing individual accounts and include
the same in their KYC Policy.
5. Operational Guidelines (version 1.1) for uploading the KYC data have been released by CERSAI.
Further, ‘Test Environment’ has also been made available by CERSAI for the use of REs.
(b) KYC documents for eligible Foreign Portfolio Investors under Portfolio Investment Scheme PIs under
PIS have been revised
CENTRAL KYC RECORDS REGISTRY (CKYCR) TEMPLATE FOR KYC & REPORTING
REQUIREMENTS UNDER FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)/ COMMON REPORTING STANDARDS (CRS) As per notification dated July 7, 2015, Government has amended the
Prevention of Money Laundering (Maintenance of Records) Rules, 2005, (Rules), for setting up of the
Central KYC Records Registry (CKYCR). The proposed CKYCR would receive, store, safeguard and
retrieve the KYC records in digital form of a client. The KYC records received and stored by the CKYCR
could be retrieved online by any reporting entity across the financial sector for the purpose of establishing
an account based relationship. In order to facilitate collating and reporting the KYC data to the proposed
CKYCR, templates have been finalised in consultation with other regulators and CBDT (separate for
individuals and legal entity). RBI has advised banks (November 26, 2015) to be in readiness to share the
KYC data with the CKYCR once the CKYCR is notified by the Government. In case of opening of 'Small
Accounts', only personal details together with the photograph, signature/thumb impression and selfcertification
document should be obtained. Salient excerpts from the Govt notification are given below:
1. "Central KYC Records Registry" means a reporting entity, substantially owned and controlled by the
Central Government, and authorised by that Government through a notification in the Official Gazette to
receive, store, safeguard and retrieve the KYC records in digital form of a client.
2. "Know Your Client (KYC) Identifier" means the unique number or code assigned to a client by the
Central KYC Records Registry;
3. "Know Your Client (KYC) records" means the records, including the electronic records, relied upon by a
reporting entity in carrying out client due diligence.
4. "last KYC verification or updation" means the last transaction made by a reporting entity in the Central
KYC Records Registry by which the KYC records of a client were recorded, changed or updated by a
reporting entity;'
5. Officially valid document means and includes the letter issued by the Unique Identification Authority of
India or National Population Register containing details of name, address.
6. Every reporting entity shall within three days after the commencement of an account-based relationship
with a client, file the electronic copy of the client's KYC records with the Central KYC Records Registry.
The Central KYC Records Registry shall process the KYC records received from a reporting entity for deduplicating
and issue a KYC Identifier for each client to the reporting entity, which shall communicate the
KYC Identifier in writing to their client.
7. Where a client, submits a KYC Identifier to a reporting entity, then such reporting entity shall retrieve
the KYC records online from the Central KYC Records Registry by using the KYC Identifier and shall not
require a client to submit the same KYC records or information or any other additional identification
documents or details, unless — (i) there is a change in the information of the client as existing in the
records of Central KYC Records Registry; (ii) the current address of the client is required to be verified;
(iii) the reporting entity considers it necessary in order to verify the identity or address of the client, or to
perform
enhanced due diligence or to build an appropriate risk profile of the client. A reporting entity after obtaining
additional or updated information from a client as above shall as soon as possible furnish the updated
information to the Central KYC Records Registry which shall update the existing KYC records of the client
and the Central KYC Records Registry shall thereafter inform electronically all reporting entities who have
dealt with the concerned client regarding updatation of KYC record of the said client. The reporting entity
which performed the last KYC verification or sent updated information in respect of a client shall be
responsible for verifying the authenticity of the identity or address of the client.
8. A reporting entity shall not use the KYC records of a client obtained from the Central KYC Records
Registry for purposes other than verifying the identity or address of the client and shall not transfer KYC
records or any information contained therein to any third party unless authorized to do so by the client or
by the Regulator or by the Director;
9. Every reporting entity shall at the time of commencement of an account-based relationship identify its
clients, verify their identity, obtain information on the purpose and intended nature of the business
relationship. A reporting entity may rely on a third party subject to the conditions that the reporting entity,
within two days, obtains from the third party or from the Central KYC Records Registry records or the
information of the client due diligence carried out by the third party.
10. Functions and obligations of the Central KYC Records Registry:
(a) shall be responsible for storing, safeguarding and retrieving the KYC records and making such records
available online to reporting entities or Director;
(b) shall take all precautions necessary to ensure that the electronic copies of KYC records are not lost,
destroyed or tampered with and that sufficient back up of electronic records are available at all times at an
alternative safe and secure place;
(c) shall provide information only to the reporting entities which are registered with it on payment of fees
as specified by the Regulator;
11. Every reporting entity shall maintain the physical copy of records of the identity of its clients after
filing the electronic copy of such records with the Central KYC Records Registry.
12. Clarification / Guidelines on filling 'Personal Details' section in templates: Name should be stated with
Prefix (Mr/Mrs/Ms/Dr/etc.). The name should match the name as mentioned in the Proof of Identity
submitted failing which the application is liable to be rejected. Either father's name or spouse's name is to
be mandatorily furnished. In case PAN is not available father's name is mandatory.
13. Clarification / Guidelines on filling 'Proof of Identity [Poll' section: If driving license number or
passport is provided as proof of identity then expiry date is to be mandatorily furnished. Mention
identification / reference number if 'Z- Others (any document notified by the central government)' is
ticked.
PORTFOLIO INVESTORS (FPIS)
RBI has made (July 8, 2016) the following amendments in KYC directions:
1. Customer Due Diligence Procedure and sharing KYC information with Central KYC Records Registry
(CKYCR): Regulated Entities shall capture the KYC information for sharing with the CKYCR, as required by
the revised KYC templates prepared for ‘individuals’ and ‘Legal Entities’ as the case may be. Government of
India has authorised the Central Registry of Securitisation Asset Reconstruction and Security Interest of India
(CERSAI), to act as, and to perform the functions of the CKYCR vide notification dated November 26, 2015.
The ‘live run’ of the CKYCR would start with effect from July 15, 2016 in phased manner beginning with new
‘individual accounts’. Accordingly, REs shall take the following steps:
1. In the first phase, Scheduled Commercial Banks (SCBs) may upload the KYC data with CERSAI, in
respect of new individual accounts opened on or after July 15, 2016.
2. REs other than SCBs may also participate in the live run of CKYCR from July 15, 2016.
3. Those REs which are not yet ready to join CKYCR
process immediately, shall take steps to prepare their systems for uploading the KYC data in respect of
new individual accounts so that the same is complete as soon as possible in a time bound manner.
4. REs shall prepare a plan for uploading the data in respect of existing individual accounts and include
the same in their KYC Policy.
5. Operational Guidelines (version 1.1) for uploading the KYC data have been released by CERSAI.
Further, ‘Test Environment’ has also been made available by CERSAI for the use of REs.
(b) KYC documents for eligible Foreign Portfolio Investors under Portfolio Investment Scheme PIs under
PIS have been revised
CENTRAL KYC RECORDS REGISTRY (CKYCR) TEMPLATE FOR KYC & REPORTING
REQUIREMENTS UNDER FOREIGN ACCOUNT TAX COMPLIANCE ACT (FATCA)/ COMMON REPORTING STANDARDS (CRS) As per notification dated July 7, 2015, Government has amended the
Prevention of Money Laundering (Maintenance of Records) Rules, 2005, (Rules), for setting up of the
Central KYC Records Registry (CKYCR). The proposed CKYCR would receive, store, safeguard and
retrieve the KYC records in digital form of a client. The KYC records received and stored by the CKYCR
could be retrieved online by any reporting entity across the financial sector for the purpose of establishing
an account based relationship. In order to facilitate collating and reporting the KYC data to the proposed
CKYCR, templates have been finalised in consultation with other regulators and CBDT (separate for
individuals and legal entity). RBI has advised banks (November 26, 2015) to be in readiness to share the
KYC data with the CKYCR once the CKYCR is notified by the Government. In case of opening of 'Small
Accounts', only personal details together with the photograph, signature/thumb impression and selfcertification
document should be obtained. Salient excerpts from the Govt notification are given below:
1. "Central KYC Records Registry" means a reporting entity, substantially owned and controlled by the
Central Government, and authorised by that Government through a notification in the Official Gazette to
receive, store, safeguard and retrieve the KYC records in digital form of a client.
2. "Know Your Client (KYC) Identifier" means the unique number or code assigned to a client by the
Central KYC Records Registry;
3. "Know Your Client (KYC) records" means the records, including the electronic records, relied upon by a
reporting entity in carrying out client due diligence.
4. "last KYC verification or updation" means the last transaction made by a reporting entity in the Central
KYC Records Registry by which the KYC records of a client were recorded, changed or updated by a
reporting entity;'
5. Officially valid document means and includes the letter issued by the Unique Identification Authority of
India or National Population Register containing details of name, address.
6. Every reporting entity shall within three days after the commencement of an account-based relationship
with a client, file the electronic copy of the client's KYC records with the Central KYC Records Registry.
The Central KYC Records Registry shall process the KYC records received from a reporting entity for deduplicating
and issue a KYC Identifier for each client to the reporting entity, which shall communicate the
KYC Identifier in writing to their client.
7. Where a client, submits a KYC Identifier to a reporting entity, then such reporting entity shall retrieve
the KYC records online from the Central KYC Records Registry by using the KYC Identifier and shall not
require a client to submit the same KYC records or information or any other additional identification
documents or details, unless — (i) there is a change in the information of the client as existing in the
records of Central KYC Records Registry; (ii) the current address of the client is required to be verified;
(iii) the reporting entity considers it necessary in order to verify the identity or address of the client, or to
perform
enhanced due diligence or to build an appropriate risk profile of the client. A reporting entity after obtaining
additional or updated information from a client as above shall as soon as possible furnish the updated
information to the Central KYC Records Registry which shall update the existing KYC records of the client
and the Central KYC Records Registry shall thereafter inform electronically all reporting entities who have
dealt with the concerned client regarding updatation of KYC record of the said client. The reporting entity
which performed the last KYC verification or sent updated information in respect of a client shall be
responsible for verifying the authenticity of the identity or address of the client.
8. A reporting entity shall not use the KYC records of a client obtained from the Central KYC Records
Registry for purposes other than verifying the identity or address of the client and shall not transfer KYC
records or any information contained therein to any third party unless authorized to do so by the client or
by the Regulator or by the Director;
9. Every reporting entity shall at the time of commencement of an account-based relationship identify its
clients, verify their identity, obtain information on the purpose and intended nature of the business
relationship. A reporting entity may rely on a third party subject to the conditions that the reporting entity,
within two days, obtains from the third party or from the Central KYC Records Registry records or the
information of the client due diligence carried out by the third party.
10. Functions and obligations of the Central KYC Records Registry:
(a) shall be responsible for storing, safeguarding and retrieving the KYC records and making such records
available online to reporting entities or Director;
(b) shall take all precautions necessary to ensure that the electronic copies of KYC records are not lost,
destroyed or tampered with and that sufficient back up of electronic records are available at all times at an
alternative safe and secure place;
(c) shall provide information only to the reporting entities which are registered with it on payment of fees
as specified by the Regulator;
11. Every reporting entity shall maintain the physical copy of records of the identity of its clients after
filing the electronic copy of such records with the Central KYC Records Registry.
12. Clarification / Guidelines on filling 'Personal Details' section in templates: Name should be stated with
Prefix (Mr/Mrs/Ms/Dr/etc.). The name should match the name as mentioned in the Proof of Identity
submitted failing which the application is liable to be rejected. Either father's name or spouse's name is to
be mandatorily furnished. In case PAN is not available father's name is mandatory.
13. Clarification / Guidelines on filling 'Proof of Identity [Poll' section: If driving license number or
passport is provided as proof of identity then expiry date is to be mandatorily furnished. Mention
identification / reference number if 'Z- Others (any document notified by the central government)' is
ticked.
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