India to launch common customer identification system (CKYC 2.0) for banks and insurers in August
India is set to launch a common customer identification system, Central Know-Your-Customer 2.0 (CKYC 2.0), for banks and insurers in August, with asset managers joining later. This system will allow customers to access financial products without repeatedly submitting identification documents. With customer consent, institutions can fetch data from a central registry when opening accounts or updating details. The initiative aims to deepen participation in financial products, combat fraud through easier monitoring, and address issues with the quality of data in the existing registry. While India has achieved basic financial inclusion with 89% of adults owning bank accounts, ownership in mutual funds, insurance, and pensions remains comparatively low.
Key Points
- India will roll out a common customer identification system, CKYC 2.0, for banks and insurers in August.
- The system will allow customers to access financial products without repeatedly submitting identification documents, requiring only consent to fetch data from a central registry.
- CKYC 2.0 aims to deepen financial inclusion, combat fraud, and improve data quality in the existing registry.
- Asset managers, mutual funds, and brokerages are expected to join the system later this year.
Exam Facts
- Common customer identification system: Central Know-Your-Customer 2.0 (CKYC 2.0).
- Launch month: August, for banks and insurers.
- 89% of adults owned bank accounts in 2024 (World Bank data).
- The project is jointly executed by RBI, SEBI, and the insurance regulator.
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