The government is set to roll out a revamped Central KYC (CKYC) Registry to streamline verification and improve data security, Finance Minister Nirmala Sitharaman announced in the Union Budget 2025-26.

The repository, managed by the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI), will move to an upgraded system—CKYCRR 2.0—allowing for more efficient processes and, for the first time, direct citizen access.

The new framework is part of a broader push to establish CKYC as the ‘single source of truth’ for KYC verification, reducing redundant checks across financial institutions.

It also comes as the regulator tightens its grip on compliance, recently restricting business payment solution providers and Paytm Payments Bank Ltd.

The CKYC serves as a centralised repository of KYC records for customers across the financial sector. Institutions such as mutual funds, stockbrokers, insurance firms, banks, and SEBI-registered investment advisers can access this database to verify and retrieve KYC data.

Since these records are stored digitally, financial entities can eliminate duplicate data collection, ensuring customers do not undergo multiple KYC verifications. The platform enables firms to check a client’s KYC compliance status using Aadhaar, PAN, and other identity proofs.

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Any updates made by one institution are reflected in real-time across all entities, significantly reducing costs by eliminating redundant registrations and minimising data maintenance efforts.

Alongside process improvements, the Centre has proposed stricter data protection measures. KYC identifiers will now be masked, preventing unrestricted searches by intermediaries. Access to records will be controlled through unique IP-based authorisation, ensuring customer data is safeguarded from misuse.

Wriju Ray, Chief Business Officer at IDfy, noted that these changes align with the government’s push for financial inclusion and a more secure digital ecosystem. “Streamlining KYC will ease compliance while securing data more rigorously,” he said.

He added that limiting unauthorised access and prioritising data integrity would help build trust in the financial system while reducing the compliance burden on businesses and consumers.