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KYC — Know Your Customer
India's identity verification framework — from physical documents to eKYC, Video KYC, and the Central KYC Registry. All types explained.
RBI MandatePMLA 2002AadhaarCKYCRRDigital KYC
What is KYC?
KYC (Know Your Customer) is a mandatory due diligence process that financial institutions must follow to verify the identity and address of their customers before establishing a financial relationship. It is governed by the Prevention of Money Laundering Act (PMLA), 2002 and the RBI's Master Directions on KYC.
KYC is not just a one-time exercise — regulated entities must conduct periodic KYC updates (every 2 years for high-risk, 8 years for medium-risk, 10 years for low-risk customers) to ensure information remains current and accurate.
💡Incomplete or outdated KYC can result in your bank account being frozen for financial transactions. Always update KYC when the bank sends reminders — especially if you have changed your address or mobile number.
Types of KYC in India
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Physical / Offline KYC
Traditional in-branch KYC using physical documents — PAN card, Aadhaar, passport, utility bills. Original documents verified and copies retained.
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eKYC (Aadhaar-based)
Paperless KYC using Aadhaar authentication. Instant and remote. Two sub-types: OTP-based (online) and biometric (fingerprint/iris) — used at branches.
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Video KYC (V-KYC)
Live video call with bank/NBFC official. Customer shows documents on camera + live photo. RBI permitted this in 2020 enabling fully digital onboarding.
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Central KYC (CKYC)
One-time KYC stored in the CKYCRR. Unique 14-digit KYC Identifier. Accepted by all SEBI and IRDAI regulated entities.
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In-Person Verification (IPV)
Required by SEBI for investment accounts. Can now be done via video call with authorised officials of the institution.
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OTP-based eKYC
Online-only, instant. Customer enters Aadhaar number + OTP sent to Aadhaar-linked mobile. Suitable for digital loan apps and investment platforms.
KYC Documents Required
Identity Proof (OVDs — Officially Valid Documents)
Under PMLA, the following are Officially Valid Documents (OVDs): Aadhaar Card, Passport, Voter ID (EPIC), Driving Licence, NREGA Job Card, Letter from National Population Register. PAN Card is additionally mandatory for financial transactions above ₹50,000.
Address Proof
Utility bills (electricity, telephone — not older than 2 months), bank statement, rent agreement (notarised), Aadhaar with current address, or any OVD with current address. For digital KYC, a live photo with GPS location coordinates may substitute.
💡Aadhaar serves as both identity and address proof in one document — making it the most convenient OVD for KYC. However, sharing Aadhaar number is governed by the Aadhaar Act — financial institutions must use masked Aadhaar or the offline XML eKYC method.
Digital KYC — The Future of Identity Verification
Video KYC (V-KYC / VKYC)
Introduced by RBI in January 2020, Video KYC (officially called Video-based Customer Identification Process — V-CIP) allows banks and NBFCs to complete KYC through a live, recorded video call. The official verifies identity documents in real-time, captures a live photograph, and asks security questions. No branch visit required.
DigiLocker-based KYC
Documents stored in DigiLocker (issued by government authorities) are legally equivalent to originals. Financial institutions can pull documents directly from DigiLocker with customer consent, making KYC instant and paperless.
AI/ML-based KYC
Many fintechs now use AI/ML for document OCR (reading PAN/Aadhaar details automatically), liveness detection (preventing photo spoofing in video KYC), and face-match between document photo and live selfie. RBI mandates that AI-assisted KYC must still have human oversight.
Central KYC (CKYC) — One KYC Everywhere
CKYC is managed by the Central KYC Records Registry (CKYCRR), operated by CERSAI (Central Registry of Securitisation Asset Reconstruction and Security Interest of India). Once you complete KYC with any SEBI or IRDAI-regulated entity, your data is uploaded to CKYCRR and you receive a 14-digit KIN (KYC Identification Number).
Going forward, you can use this KIN to complete KYC with any other regulated entity — they fetch your verified details directly from CKYCRR. No repetitive document submission. CKYC was initially for capital markets but is being extended to banking and insurance.
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KIN (14-digit)
Unique identifier assigned after first CKYC. Quote this for all future financial account openings.
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Updates
If you change address or name, update with any one regulated entity — it reflects across CKYCRR.
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Operated by
CERSAI on behalf of SEBI, IRDAI, PFRDA regulators.
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Check Status
Visit ckycrr.com with your PAN or KIN to check your CKYC status.
Frequently Asked Questions
Q: Is Aadhaar mandatory for KYC in India?
A: No. Aadhaar is one of the Officially Valid Documents (OVDs) — you can use passport, voter ID, or driving licence instead. However, Aadhaar-based eKYC is the fastest and most convenient option for digital accounts.
Q: What is the difference between eKYC and Video KYC?
A: eKYC uses Aadhaar OTP or biometric to verify identity digitally — no human verification. Video KYC (V-CIP) is a live video call with an authorised bank/NBFC official who verifies documents in real-time. Both are fully valid for account opening.
Q: How often do I need to update KYC?
A: As per RBI: High-risk customers — every 2 years. Medium-risk — every 8 years. Low-risk — every 10 years. Your bank will notify you when KYC renewal is due.
Q: Can a company complete KYC?
A: Yes. For legal entities, KYC involves verifying the company's registration documents, beneficial ownership (UBO), directors' KYC, and business address — more complex than individual KYC.
Q: What happens if I don't complete KYC?
A: Banks and regulated institutions can restrict or freeze financial transactions on accounts with expired or incomplete KYC — including blocking credits, debits, and new product applications — until KYC is completed.