What does CKYC mean for Fixed Deposit Investors?

CKYC means Central KYC (Know Your Customer). Central KYC is an initiative taken by the Government of India to ease the process of applying for various financial instruments. It is a one-time process that an individual investor needs to complete to avoid the burden of completing KYC every time while making an investment across the financial market.

The process for CKYC is regulated and managed by the Central Registry of Securitization Asset Reconstruction and Security Interest of India (CERSAI) with authorization by the Government of India. The whole process is known as Central KYC Registry (CKYCR). 

CKYC is a unified norm of KYC. The main purpose behind the introduction of CKYCR is to eliminate the KYC process with different financial organizations separately to make an investment. Therefore, CKYCR serves as a repository of the KYC records of investors. This simply eases the process of investing for a number of investment ideas like fixed deposits, mutual funds, equities, etc. 

Documents required to complete the CKYCR

The following documents are required to complete the CKYCR: 

• CKYC form OR a supplementary KYC form + KRA application form 

• Identity Proof (a self-attested copy)

• Address Proof ( a self-attested copy)

• One Passport Size Photograph 

For identity proof, one can submit a PAN Card, Voter ID card, AADHAR Card, or any other document verified by the Central Government. Even for the address proof, the above-mentioned documents, except the PAN card, can be submitted. In case the permanent address and correspondence address of the investor varies, then the investor has to submit the proof for both addresses. 

With the completion of the registry process, you will be informed electronically with your CKYC number. It will be a unique 14 digit number linked with your ID proof. Whenever you want to make an investment in the financial sector, you can provide this number to the service provider to fasten the process. 

CKYC for Fixed Deposit Investors

Investors need to submit KYC documents for the Fixed Deposits also. CKYCR is going to be helpful for the fixed deposit option as well. Every time investors need not complete the KYC process to open a new fixed deposit account if their CKYC is already completed. 

Fixed Deposits are one of the low-risk investment ideas for an individual and HUFs. Bajaj Finance FD is available for NRI investors also. The terms and conditions for KYC formalities may vary for them. Not needed to mention that the funds invested in fixed deposits are safe and secured as the returns will not be affected by the market fluctuations. Therefore, NRI investors also prefer FDs in India.

Fixed Deposits are preferred to meet both the long-term goals and the short-term goals because of the flexible tenor and liquidity feature. One can sign up for the fixed deposit scheme through any authorized banks and reputed NBFCs like Bajaj Finance. One can compare the offered rate of return on the fixed deposits with different institutions before investing. If compared, NBFCs are offering a higher rate of returns as compared to banks. 

Bajaj Finance Fixed Deposit is offering multiple benefits to its investors. Some of the benefits are mentioned below: 

• It offers lucrative interest rates of up to 6.75%. There is additional rate benefit for senior citizens.

• The minimum investment amount is as low as Rs. 25000.

• The entire process to open a fixed deposit account is 100% online and paperless.

• The investment tenor ranges from 12 months to 60 months. 

• Investors can opt for receiving periodic interest payouts.

• In addition, one can also avail loan against the fixed deposits easily. 

Thus, stay one step ahead with the completed CKYCR to make financial investments.

Author Bio

Gaurav Khanna is an experienced financial advisor, digital marketer, and writer who is well known for his ability to predict market trends. Check out his blog at Highlight Story.