What is KYC? What is the Difference Between CKYC, e-KYC, Video KYC, and Re-KYC?

 

What is KYC? What is the Difference Between CKYC, e-KYC, Video KYC, and Re-KYC?

A.G.V. Srinath Vijay, Co-Founder.

https://gbvmfservices.in/, ARN-148604 

 

Whether you are opening a bank account, investing in mutual funds, purchasing an insurance policy, or opening a stock market trading account, Know Your Customer (KYC) is a mandatory process. However, terms such as KYC, CKYC, e-KYC, Video KYC, and Re-KYC often confuse many people.

Although all these processes serve the same purpose—verifying a customer's identity and preventing financial fraud and illegal transactions—their methods and applications differ.

 

What is KYC?

Know Your Customer (KYC) is the process through which banks, financial institutions, mutual fund companies, and insurance providers verify the identity and address of a customer before offering financial services.

The documents commonly accepted for KYC include:

• Aadhaar Card
• PAN Card
• Voter ID
• Passport
• Driving Licence

Under the traditional KYC process, every bank or financial institution performs its own customer verification and maintains its own records.

 

 

What is CKYC?

Central Know Your Customer (CKYC) is a centralized KYC registration system introduced to eliminate the need for customers to submit KYC documents repeatedly to different financial institutions.

Earlier, customers had to complete KYC separately every time they opened a bank account, invested in mutual funds, or purchased insurance.

With CKYC, once a customer completes the registration process, a 14-digit CKYC Identification Number is generated. This enables participating banks and financial institutions to access the customer's KYC information without requiring repeated document submissions.

As a result, the account opening process becomes faster and more convenient.

 

What is e-KYC?

Electronic Know Your Customer (e-KYC) is a completely digital identity verification process.

In this method, customer details are verified electronically using Aadhaar authentication through:

• One-Time Password (OTP) sent to the registered mobile number, or
• Biometric authentication such as fingerprint or iris scan.

The biggest advantage of e-KYC is speed. Customers can complete the verification process and open eligible accounts within a few minutes without submitting physical documents.

It is a paperless, quick, and convenient method widely used for digital financial services.

 

What is Video KYC (V-KYC / V-CIP)?

With the growth of digital banking, many banks now offer Video KYC, also known as Video Customer Identification Process (V-CIP).

In this process, the customer joins a live video call with an authorized bank official.

During the verification, the bank:

• Confirms the customer's identity.
• Verifies PAN and Aadhaar details.
• Confirms the customer's live presence.
• Captures photographs and digital signatures where required.
• Completes the identity verification remotely.

This allows customers to open accounts from home without visiting a bank branch.

 

What is Re-KYC?

Completing KYC once does not mean it remains valid forever.

Over time, a customer's address, occupation, income, mobile number, or other personal details may change. Therefore, banks and financial institutions periodically request customers to update their KYC information.

This periodic updating process is known as Re-KYC.

 

When Should Re-KYC Be Completed?

The frequency of Re-KYC depends on the customer's risk category.

Customer Risk Category	Typical Re-KYC Frequency
Low Risk	Once every 10 years
Medium Risk	Once every 8 years
High Risk	Once every 2 years

Customers should submit the required documents whenever their bank or financial institution requests a KYC update.

 

Difference Between KYC, CKYC, e-KYC, Video KYC, and Re-KYC

Type	Full Form	Purpose	Key Feature
KYC	Know Your Customer	Identity verification	Each institution performs verification separately
CKYC	Central Know Your Customer	One-time centralized registration	Generates a unique 14-digit CKYC ID
e-KYC	Electronic Know Your Customer	Fast digital verification	Aadhaar-based electronic authentication
Video KYC (V-CIP)	Video Customer Identification Process	Remote customer verification	Live video verification without branch visit
Re-KYC	Periodic KYC Update	Updating customer information	Conducted at regular intervals as required

 

Why is KYC Important?

KYC plays a vital role in protecting both customers and financial institutions. It helps prevent the opening of fraudulent accounts, reduces financial fraud, identity theft, money laundering, and illegal financial transactions.

It also enables banks, mutual fund companies, insurance providers, and other financial institutions to comply with regulatory requirements while offering secure financial services.

 

Things to Remember While Completing KYC

• Ensure that your name matches exactly across your Aadhaar Card and PAN Card.
• Keep your registered mobile number and email address updated.
• Inform your bank immediately if your residential address changes.
• Submit KYC documents only through authorized bank officials or official digital platforms.
• Never share your OTP, ATM PIN, internet banking password, or other confidential banking credentials with anyone.
• Complete Re-KYC promptly whenever your bank or financial institution requests it.

 

KYC, CKYC, e-KYC, Video KYC, and Re-KYC are all designed to verify customer identity and ensure the safe delivery of financial services. Although their names and procedures differ, they share the same objective of strengthening security and regulatory compliance.

With the rapid growth of digital banking, e-KYC and Video KYC have made account opening and financial onboarding much faster and more convenient. At the same time, Re-KYC ensures that customer information remains accurate and up to date. By understanding these processes and completing them whenever required, customers can enjoy seamless, secure, and hassle-free access to a wide range of financial services.

 

For More details and Investing 

 

A.G.V. Srinath Vijay, Co-Founder.

https://gbvmfservices.in/, ARN-148604 

He is a Qualified Personal Finance Professional (QPFP). His father is also a mutual fund distributor. Hailing from Pollachi, he currently provides financial services to approximately 2,500 individuals.

 

Read articles written by Mr. A.G.V. Srinath Vijay in Nanayam Vikatan, a leading personal financial management magazine https://bit.ly/4uj1I1Y

 

Phone - 9080705714

Email - srivj.sv@gmail.com

Address:  33, SV Towers, New Scheme Road,

Pollachi - 642 001

Tamil Nadu

Office Time: Monday – Saturday: 10:00 AM – 06:30 PM

Disclaimer: Mutual Fund investments are subject to market risks, read all scheme related documents carefully. The past performance of the mutual funds is not necessarily indicative of future performance of the schemes.