CKYC 2.0 Rollout in August 2026 for Banks and Insurers
Why in the news
Banks and insurers are set to switch to an upgraded Central KYC system in August 2026, which promises to spare customers repeated paperwork.
Key facts
- Name: Central Know Your Customer (CKYC) 2.0.
- Launch: August 2026 by banks and insurance companies; mutual funds will join at a later stage.
- How it works: an institution pulls a customer’s verified KYC record from a central registry after OTP-based consent.
- Benefit: no repeat submission of PAN, Aadhaar or address proof.
| Item | Detail |
|---|---|
| First users | Banks, insurance companies |
| Later users | Mutual funds |
| Consent mode | OTP |
| Data source | Central registry of verified KYC records |
Significance
- Makes onboarding with a new financial institution quicker.
- Keeps customer consent at the centre of data retrieval.
Exam angle
- Expansion of CKYC: Central Know Your Customer.
- Consent method: OTP; launch month: August 2026.
- Mutual funds are not in the first phase.