The statement refers to CKYC 2.0 (Central KYC system), which aims to stop customers from submitting the same identity and address documents again and again when dealing with different financial institutions.
What problem it solves:
Right now, when you:
- Open a bank account
- Take a loan
- Invest in mutual funds
You often have to submit KYC documents multiple times
What CKYC 2.0 will do
- Store your KYC details in a central system
- Allow banks/NBFCs to access your verified data directly
- Remove the need for repeated document submission
One-time KYC → Use everywhere
Benefits:
- Faster account opening & loan processing
- Less paperwork
- Better customer experience
- Improved efficiency for banks
economictimes