In today's digital age, financial transactions and services have become increasingly streamlined and convenient, thanks to advancements in technology. eKYC (Electronic Know Your Customer) and CKYC (Central Know Your Customer) are two such innovations that have revolutionised the verification process in the financial sector.
What is eKYC?
eKYC, or Electronic Know Your Customer, is a digital method of verifying the identity of individuals remotely. It eliminates the need for physical documents and in-person verification, making the process faster and more convenient for both customers and service providers.
In the eKYC process, individuals provide their Aadhaar card number along with biometric authentication, such as fingerprint or iris scan, to verify their identity. This information is securely transmitted to the concerned authority for verification, reducing the time and effort required for manual checks.
eKYC is widely used in various sectors, including banking, telecommunications, insurance, and mutual funds, to onboard customers quickly and efficiently. It enhances the customer experience by simplifying the onboarding process and reducing paperwork.
Why e-KYC Is Important
e-KYC (electronic Know Your Customer) turns the traditional verification process fully digital — no paperwork, no branch visits, and no long waiting times. It speeds up customer onboarding, enhances security with Aadhaar-based biometric or OTP checks, and helps reduce fraud and identity theft.
What is CKYC?
CKYC, or Central Know Your Customer, is a centralised repository of KYC (Know Your Customer) records of customers in the financial sector. It aims to streamline the KYC process and reduce duplication of efforts across different financial institutions.
Under CKYC, customers need to undergo the KYC process only once, and their information is stored centrally in a secure database. This information can be accessed by financial institutions to verify the identity of customers during onboarding or transactions.
CKYC ensures that customers do not need to submit KYC documents repeatedly when availing services from different financial entities. It promotes efficiency, reduces paperwork, and enhances the overall customer experience in the financial sector.
Why e-KYC (CKYC) Is Important
Central KYC (CKYC) and e-KYC simplify customer verification by moving it online — no paperwork, no branch visits. They speed up onboarding, boost security through Aadhaar-based authentication, reduce fraud risk, and ensure regulatory compliance across banking and financial services.
Differences between eKYC and CKYC
1. Verification process:
- eKYC relies on digital authentication methods such as Aadhaar and biometrics for identity verification.
- CKYC involves the centralised storage and retrieval of KYC records of customers across financial institutions.
2. Scope:
- eKYC is primarily used for remote verification of individuals' identities during onboarding or transactions.
- CKYC focuses on maintaining a centralised repository of KYC records to facilitate seamless verification across financial entities.
3. Implementation:
- eKYC is implemented by individual service providers such as banks, insurance companies, and telecom operators.
- CKYC is implemented at a regulatory level and is maintained by regulatory bodies or designated agencies.
4. Purpose:
- eKYC aims to simplify and expedite the customer onboarding process while enhancing security and compliance.
- CKYC aims to standardise and centralise the KYC process across the financial sector to reduce redundancy and enhance efficiency.
Benefits of e-KYC and CKYC
Benefits |
eKYC |
CKYC |
Reduced processing time |
Instant verification |
Single registration for multiple services |
Increased efficiency |
Automated process |
Eliminates repeated KYC processes |
Convenience |
Online verification |
No need to repeat KYC for each financial institution |
Cost savings |
Lower operational costs |
Reduces paperwork and verification costs |
Improved accuracy |
Minimises manual errors |
Standardised and centralised data |
Enhanced security |
Secure digital storage |
Protects against identity theft and fraud |
Compliance |
Adheres to regulatory requirements |
Ensures regulatory compliance across sectors |
Customer experience |
Seamless onboarding |
Simplifies customer onboarding across financial institutions |
Data standardisation |
Standardised data collection |
Standardised data across financial institutions |
Paperless |
Eliminates physical documents |
Reduces physical documentation |
How to choose the right KYC - eKYC vs cKYC
The choice between eKYC and CKYC depends on various factors such as regulatory requirements, operational preferences, and customer convenience. While eKYC offers convenience and speed in customer onboarding, CKYC ensures consistency and reliability in KYC verification across financial institutions.
In conclusion, eKYC and CKYC are two distinct yet complementary systems that have transformed the way identity verification is conducted in the financial sector. Understanding their differences and functionalities is crucial for both service providers and customers to leverage the benefits of digital authentication effectively.
Incorporating eKYC and CKYC into your financial processes can streamline operations, enhance security, and improve customer satisfaction. Stay informed and embrace digital innovation for a seamless financial experience.
How to Apply for Insta EMI Card
Step-by-step guide to applying for the Bajaj Finserv Insta EMI Card
Enter your 10-digit mobile number and click on “GET IT NOW” on the top of the page.
Enter the OTP and submit.
Enter your full name and click on “Yes, Auto-Fetch Details”
Verify your pre-filled personal details. Select your gender and employment type and click on “PROCEED”
Click on proceed and check your pre-qualified card loan offer amount
Click on Proceed to verify your KYC details.
Post successful KYC, check your card loan offer amount details.
Select and apply a promo code of your choice and pay a one-time joining fee of Rs. 530/- (inclusive of applicable taxes)
After successful payment, view your card details on the Bajaj Finserv app
Note: The online process may differ depending on whether you are a new customer or have an existing relationship with us.
Related Terms for EMI Card
