Budget 2025 announces revamped Central KYC registry for better data privacy

New Delhi, Feb 1, 2025

Step will help compliance measures covering Aadhaar, PAN card, voter identity

Union Budget 2025 has announced setting up a newly revamped central Know Your Customer (KYC) registry to have a “streamlined system”.

It introduced additional measures for data protection in relation to Central KYC, covering documents such as Aadhaar, PAN card, voter identity (ID) card, and driving licences.

What is CKYC?

CKYC is a centralised repository that stores all the personal details of the customer. Managed by the Central Registry of Securitisation Asset Reconstruction and Securities Interest of India (CERSAI), CKYC streamlines the KYC process by eliminating the need for customers to undergo verification repeatedly when engaging with different financial institutions.

“The revamped Central KYC Registry is a crucial step toward simplifying compliance. With a streamlined update system and robust data protection measures, this initiative will improve efficiency, reduce redundancies, and strengthen trust in India's financial ecosystem,” said Rohit Jain, managing partner, Singhania & Co.

“The new CKYC framework is a major step toward streamlining identity verification while strengthening data security. By replacing visible Aadhaar and PAN details with a CKYC Reference ID, the government aims to curb data misuse and simplify compliance for businesses and individuals. This should eliminate redundant KYC checks across banks, mutual funds, and insurers, making transactions smoother,” said Sandeep Chilana, managing partner, CCLaw.

“A revamped CKYC architecture which is robust and privacy preserving, while meeting key regulatory imperatives including ease of on-boarding and protecting investors, can help drive sustainable digitisation for this sector,” said Arun Prabhu, partner (head - technology), Cyril Amarchand Mangaldas.

[The Business Standard]