The revamped Central KYC (CKYC) registry, announced in the Union Budget 2025, is likely to transform financial onboarding by streamlining compliance processes and reducing redundancies.

By consolidating customer data into a unified system, it aims to eliminate the need for repeated documentation and verification across multiple financial institutions.

Shikhar Aggarwal, Chairman of BLS E-Services, highlighted the inefficiencies in the current KYC framework.

“One of the key challenges in the current KYC landscape is the fragmentation of frameworks across institutions, leading to inconsistencies and delays. A unified CKYC system will resolve this by standardising KYC norms and enabling seamless data sharing. This harmonisation will enhance digital onboarding, making it more accessible and user-friendly for both financial institutions and customers,” he said.

The use of technology is central to this transformation.

AI-driven automation and real-time compliance monitoring will improve security while reducing onboarding friction.

“By automating verification processes and enhancing data security, the revamped CKYC system will empower financial institutions to focus on delivering value to their customers,” Aggarwal added.

Vishal Jain, CEO of Manipal Business Solutions, emphasised the broader impact of CKYC.

“The upcoming revamped CKYC registry marks a leap toward a more seamless and efficient compliance process. By unifying KYC requirements across banking, insurance, and investments, it will eliminate redundancies, accelerate digital onboarding, and enhance financial inclusion,” he said.

Security will also see a major boost with the introduction of masked KYC identifiers in 2025.

Jain noted, “The introduction of masked KYC identifiers will strengthen data protection, ensuring sensitive information remains secure. If implemented effectively, this initiative will not only streamline compliance for financial institutions but also enhance customer experience, making financial services more accessible, secure, and transparent.”