Budget 2025: Govt To Roll Out Revamped Central KYC Registry by December
Moneylife Digital Team 01 February 2025
Presenting her eighth Union Budget, finance minister Nirmala Sitharaman unveiled plans to roll out a revamped central know-your-customer (CKYC) registry in 2025, aimed at simplifying the KYC process for investors while enhancing data security.
 
The updated registry seeks to address growing concerns about the safety and misuse of KYC data. One of the key changes is the masking of KYC identifier details, such as permanent account number (PAN, Aadhaar, voter ID, and driving license), ensuring that only the last four digits of these documents are visible. 
 
This measure, effective from 20 January 2024, will protect users' personal information by restricting access to complete KYC data.
 
The Central KYC Records Registry (CKYCR) is focusing on improving privacy by masking KYC identifiers in search results and preventing intermediaries from accessing sensitive customer data. By doing so, it aims to stop unauthorised downloading or misuse of identity information. 
 
The CKYCR new system also requires regulated entities (REs), such as financial institutions, to use their own unique IP addresses to access KYC records. This ensures that third-party intermediaries, who were previously able to access KYC data through shared IP addresses, can no longer misuse the system. The deadline for implementing this feature is 31 December 2024.
 
Additionally, the Central KYC Registry is mandating that all data accessed from its system must be stored securely, with adequate cybersecurity measures in place to prevent unauthorised access. This will provide an extra layer of protection against potential data breaches, ensuring that KYC data remains safe throughout the process.
 
With the new system set to take effect in 2025, these changes are expected to make the KYC process safer and more efficient for all parties involved.
 
Comments
r_ashok41
4 days ago
kyc data should be made robust so that it does not fall into the hands of unscrupulous people
trip120220
7 days ago
By restricting access to KYC data, it will create more problems than solutions. Currently, even the CERSAI KYC database cannot be accessed by intermediaries like RTAs under the guise that they are not the end user of the data and the KYC holder is not their client. This results in the individual having to provide KYC documentation multiple times. The process does not appear to be thought through for practical purposes.
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