What is the main purpose of the Central KYC Records

Q: Answer-What is the main purpose of the Central KYC Records Registry (CKYCR) in India?

The Central KYC Records Registry CKYCR was established under the Prevention of Money Laundering Act PMLA, 2002 framework. Its role is to function as a central repository of KYC records of customers. It enables one-time KYC once a customer completes KYC with one financial institution, the same information can be shared digitally with other institutions with proper consent, reducing duplication. CKYCR thus enhances efficiency, compliance, and financial inclusion.

Registry (CKYCR) in India?

A Maintain KYC records only of non-resident clients Correct Answer Incorrect Answer

B Act as a central system to digitally store and retrieve KYC records of customers for financial institutions Correct Answer Incorrect Answer

C Monitor suspicious transactions under the PMLA directly Correct Answer Incorrect Answer

D Conduct periodic audits of regulated entities (REs) for compliance Correct Answer Incorrect Answer

E Facilitate fund transfers between banks Correct Answer Incorrect Answer

Solution

• The Central KYC Records Registry (CKYCR) was established under the Prevention of Money Laundering Act (PMLA), 2002 framework. • Its role is to function as a central repository of KYC records of customers. • It enables “one-time KYC” — once a customer completes KYC with one financial institution, the same information can be shared digitally with other institutions (with proper consent), reducing duplication. • CKYCR thus enhances efficiency, compliance, and financial inclusion.

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