The Complete Guide to CKYC – Features, Benefits and How It Works

Knowledge is power. And in the banking and payments industry, knowledge is essential to operating the system securely and efficiently.

Your knowledge is the industry’s Know Your Customer.

Almost a prerequisite, KYC has become the most convenient and secure way to avail of business services in the BFSI sector. KYC aims to assess the level of risk a person poses to the financial institution serving them. Ideally, if done once correctly, this KYC should suffice across all financial institutions in India.

However, the periodic nature of executing the entire end-to-end verification and validation presented itself as an opportunity to have a one-stop repository for all the KYC documentation needs.

The Government of India announced a centralised repository in the form of CKYC in the 2012–13 Union Budget and went live in July 2016. So, with CKYC, once your KYC is done, it does not need to be done again.

While efficiency was the payoff, the intent always stayed rooted in preventing financial fraud, including money laundering and illicit usage of funds. And nine years on, the registry has grown into one of the largest identity infrastructure projects in the country — it now holds roughly 1.2 billion records, with 103 crore CKYC registrations logged in 2025 alone. That scale is exactly why the registry is now in the middle of its biggest upgrade yet: CKYC 2.0.

CKYC 2.0 Goes Live: What’s Changing and Why Now

CKYC 2.0 formally began rolling out in August 2026, and the push behind it is coming from the regulators, the registry operator, and the industry itself.

A joint regulatory mandate.

RBI, SEBI, and IRDAI are jointly driving adoption of the new stack, with banks and insurers the first cohort required to onboard from August 2026. Mutual funds and brokers are expected to be phased in by the end of the year. The intent is a genuine “one nation, one KYC” experience — a CKYC number that behaves the same way no matter which regulated entity is looking it up.

A registry rebuilt for scale.

CERSAI has awarded a ₹161 crore contract to build out the CKYCRR 2.0 infrastructure, engineered to handle 40 lakh record uploads a day — a big jump from what the current architecture was designed for. That capacity matters: with over a billion records already on file and fresh registrations arriving in the tens of crores every year, the old plumbing was becoming the bottleneck.

Compliance deadlines with real teeth.

PMLA rules now require KYC records to be synchronised with the registry within 7 days, tightening what used to be a looser timeline. And looming further out, the DPDP Act’s enforcement window opens in May 2027, carrying penalties of up to ₹250 crore for serious data-handling lapses, which puts a hard number on the cost of getting CKYC record-keeping wrong.

Confidence scores to fix a trust problem.

One of the long-standing gaps in the CKYC registry has been data quality — duplicate records, incomplete fields, and stale master data have all limited how much financial institutions were willing to rely on a CKYC hit alone. CKYC 2.0 introduces a machine-assessed confidence score on every record, meant to give institutions a quick, quantified read on how reliable a given record actually is before they lean on it.

A modern protocol, finally.

Technically, 2.0 also moves the registry off XML-and-digital-signature workflows and onto REST/JSON with OAuth 2.0 and mTLS, a shift that matters less for compliance and more for how quickly engineering teams can actually integrate and maintain the connection.

Put together, this isn’t a cosmetic release. It’s a genuine infrastructure upgrade, backed by a compliance deadline that regulated entities can’t quietly sit out.

Here’s how the two versions stack up side by side:

Component	CKYC 1.0	CKYC 2.0
Protocol	XML, digitally signed (SHA-256)	REST/JSON with OAuth 2.0 and mTLS
Search modes	ID-based only (PAN, Aadhaar last 4 digits, Voter ID, etc.)	ID-based, plus photo, mobile-number, and Verifiable Credential search
Download consent	Single-shot request/response, no explicit consent step	Structured OTP-based consent flow
Record quality signal	None	Machine-assessed confidence score on every record
Sync/update timeline	Looser, less standardised cadence	7-day synchronisation mandated under PMLA
Registry capacity	Built for the load of the 2016-era rollout	Engineered for 40 lakh uploads/day, backed by CERSAI’s ₹161 crore build-out
Regulatory backing	RBI-led	Joint mandate from RBI, SEBI, and IRDAI
Rollout status	Live and in production since 2016	Phased rollout from August 2026 — banks and insurers first, mutual funds and brokers by year-end

Decentro is already live on CKYC 2.0

We’ve built out Decentro’s CKYC 2.0 stack ahead of the deadline and are among the first Technical Service Providers (TSPs) with it production-ready for customers today — covering the new Search, Download, Create, and Update APIs, the OTP-based consent flow, and the newer search modes (photo-based, mobile-number, and Verifiable Credential search). Clients don’t have to choose one version and commit: you can keep running high-volume bulk onboarding on 1.x while piloting 2.0 for real-time, single-customer journeys, with no forced cutover.

If you want to see where your stack stands against the new deadline, talk to our team.

So what is CKYC?

Central Know Your Customer is abbreviated as CKYC. It is a centralised repository that holds customers’ personal information established by the Government of India. Previously, each financial firm had its own KYC procedure. The CKYC contributes to centralising all KYC processes on a single platform.

What is the difference between KYC, eKYC and CKYC?  

KYC

Know Your Customer (KYC) is an umbrella term for the identification, due diligence and monitoring protocols put in place for financial institutions to prevent the occurrence of financial crimes.

KYC is done to identify a customer. Through this process, the identity of a consumer is verified. The customer has to fill in the details on a form provided by the financial institution. The customer then submits the filled form. This process is further supplemented by an In-Person Verification (IPV). Once the verification is complete, the relevant customer data is stored with the KYC Registration Agency (KRA).

eKYC

eKYC or Electronic KYC is an enhanced version of the regular KYC process. In eKYC, verification is done with the help of a customer’s Aadhaar Card number. While completing the eKYC process, the authentication of the investor’s identity can be done:

• Via One-Time Password
• Via Biometrics 

KRA then stores the data digitally in its record.

CKYC

CKYC was the centralisation of KYC documents of customers availing various services in the financial sector. So, in essence, CKYC is a subset of KYC, just like eKYC. KYC is the traditional manual process of verifying customer identity using physical documents; eKYC is the digital version of KYC that allows remote verification. CKYC is a centralised repository in India that standardises the KYC process and enables interoperability among financial institutions. 

Features of CKYC

• CKYC is a 14-digit number associated with the customer’s identification.
• The information is securely saved in electronic form. The supplied document is then validated with the issuer.
• If the KYC information changes, all relevant institutions are notified.
• Under CKYC 2.0, each record additionally carries a confidence score reflecting how complete and reliable its data is.

Types of CKYC Accounts

cKYC accounts also vary based on the documents submitted for cKYC verification. There are 4 types of cKYC accounts – 

• Normal Account: A normal cKYC account is created if the customer submits PAN, Aadhaar, Voter ID, Passport, Driving License or NREGA job card as proof of identity.
• Simplified measures account: This account is created when the customer submits any other Officially Valid Document (OVD) as proof of identity. Simplified measures accounts possess a cKYC identifier prefixed with an ‘L’.
• Small account: This account is opened when customers submit their identifying details and a photograph. The cKYC identifier for these accounts is prefixed with an ‘S’.
• OTP-based eKYC account: This sort of account is opened for a customer when they perform OTP-based eKYC for customer identification and provide a photograph. The cKYC identifier in this case is prefixed with an ‘O’. 

So what is the Process? 

The CKYC (Central Know Your Customer) process in India involves collecting, verifying, and storing KYC information of individuals and legal entities in a centralised repository. The objective is to create a unique identifier for each customer and facilitate seamless, standardised KYC compliance across various financial institutions. Here’s how the CKYC process works:

• Customer Onboarding: When an individual or legal entity wishes to open an account or avail of financial services from a bank, mutual fund, insurance company, or any other regulated financial institution in India, they must undergo the KYC process.
• Data Collection: The customer is asked to submit the necessary identification and address proof documents and other information required for KYC compliance. Commonly accepted documents include Aadhaar, passport, voter ID, driving licence, PAN card, utility bills, etc.
• Verification: The financial institution then verifies the submitted documents and information. This may involve physical verification of original documents or electronic verification through authorised agencies like UIDAI (Unique Identification Authority of India) for Aadhaar verification.
• Creation of CKYC Record: Once the verification process is completed and the KYC details are validated, the financial institution uploads the customer’s KYC data to the Central KYC Registry (CKYCR). The CKYCR is a centralised repository managed by CERSAI (Central Registry of Securitisation and Asset Reconstruction and Security Interest of India).
• CKYC Number Generation: After the customer’s information is successfully uploaded to the CKYCR, a unique 14-digit CKYC Number is generated. This number references the customer’s KYC information in the central repository.
• Interoperability: The CKYC Number is shared with the customer and can be used across all financial institutions and intermediaries in India. This allows the customer to open accounts or avail of services from different institutions without repeatedly undergoing the KYC process.
• Access and Updates: Authorised personnel from financial institutions can access the CKYCR in real time through secure online channels to verify the KYC status of a customer. If there are any changes or updates to the customer’s KYC information, the financial institution is responsible for updating the details in the CKYCR — and, under the current PMLA rules, doing so within 7 days.
• Regulatory Compliance: CKYC helps financial institutions comply with KYC regulations set by the Reserve Bank of India (RBI) and other regulatory authorities. It ensures consistency, accuracy, and standardisation in the KYC process, reducing the risk of fraud and money laundering.
• Data Privacy and Security: CKYC follows strict privacy and security guidelines to protect customers’ sensitive information. Access to the CKYCR is restricted to authorised personnel only, and customer consent is obtained before sharing their information with other financial institutions. With the DPDP Act’s enforcement provisions taking effect in May 2027, these obligations now carry substantial financial penalties for non-compliance.

Where does CKYC fit your Fintech journey? 

Deploying CKYC (Central Know Your Customer) for your Fintech business is a no-brainer for enhancing both operational efficiency and customer experience. This coupled with

Time and Cost Savings: By leveraging CKYC, Fintech companies can save time and resources for conducting their own KYC verifications. The centralised repository eliminates the need for duplicate KYC checks and physical document verification, thus reducing costs associated with customer acquisition considerably. 

Enhanced Security and Regulatory Compliance: CKYC ensures that Fintech companies stay compliant with the KYC regulations set by regulatory authorities such as the Reserve Bank of India (RBI). Additionally, CKYC follows strict data security and privacy guidelines, ensuring customer information is protected and accessed only by authorised personnel. This helps in preventing data breaches and unauthorised access to sensitive customer data.

Data Accuracy and Integrity: Centralised KYC data in the CKYCR reduces the chances of data discrepancies and errors. CKYC 2.0’s confidence-score model takes this a step further, giving institutions a direct signal on record reliability rather than a binary hit/no-hit response. This leads to better decision-making for fintech companies and financial institutions alike.

Support for Financial Inclusion: With the ease of access, financial inclusion discourse takes the front seat every time. More individuals and businesses can join the formal financial ecosystem by simplifying the onboarding process for underbanked and underserved populations. MSMEs and SMEs stand to benefit significantly from a CKYC deployment, and with the target audience sitting in the underbanked segment, there is an efficient trickle-down effect of inclusivity. 

Where is the catch?

On the one hand, CKYC APIs and SDKs offer numerous advantages, including faster onboarding, enhanced compliance, improved data security, and a better overall customer experience. We have actively enabled players like CreditWise to connect with various financial institutions such as CERSAI, NSDL, UIDAI, and more. 

CreditWise was looking for a partner who could absorb the complexity of these integrations and offer a simple API with faster response times. Fortunately, we did see some fantastic transactions on the platform executed end-to-end via Decentro’s integrated APIs. CreditWise saw a 92% hit rate with respect to successful CKYC downloads so far. We could also verify the bank accounts of these verified users.

As rewarding as such partnerships are, there is always scope to do more from a technology perspective. And this scope was recognised by us at Decentro in the form of HYPERSTREAMS. 

So what is HYPERSTREAMS? 

Hyperstreams are a robust new offering of the Decentro stack that empowers developers to quickly build custom financial products and services. Hyperstreams, designed with the utmost attention to detail, provide seamless integration of APIs and SDKs, enabling you to create exceptional user experiences and drive financial innovation.

But how is it relevant for CYKC?

Since the changes in Central KYC Registry APIs after v1.2 significantly reduced the occurrences of additional helpful information in CKYC records, using CKYC Download alone for your onboarding might not be a seamless process or, in some cases, fully compliant.

The documents in the CKYC registry need to be classified correctly, and according to RBI’s directions, expired documents in the CKYC registry can no longer be used as valid KYC for onboarding a customer.

Furthermore, a CKYC Prefill Hyperstream would be very effective in this particular use case. It would take the minimum possible input from the user, i.e., the name and the phone number. Following this, the Hyperstream fetches all the user documents present in the CKYC Registry.

Whether it is operating on the back of an enhanced technology like Hyperstreams, or plugged directly into the newly upgraded 2.0 registry, one thing is clear: as the financial landscape evolves, CKYC will play a crucial role in ensuring efficient and secure customer identification and compliance processes. With the 2.0 deadline now live, the open question isn’t whether your institution needs to move — it’s how much runway you have left to do it on your own terms rather than at the last minute.

Curious to know how this new offering will fit into your roadmap?

Do you have a platform requiring verification of customers or businesses that you’re looking to make live?

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