IRDAI mandates Insurance firms to submit KYC information to a Central Registry
Insurance companies are now required by the Insurance Regulatory and Development Authority of India (IRDAI) to upload the verified Know Your Customer (KYC) information of current policyholders to the Central KYC Records Registry (CKYCRR) website. This measure is part of a larger effort to make financial transactions more transparent and secure in all sectors.
The CKYCRR is a centralized KYC system that can be used for banking, mutual funds, stocks, insurance, the National Pension System (NPS), and other financial transactions. IRDAI intends to simplify the customer on boarding process for mutual fund distributors and insurance agents by mandating the use of CKYCRR.
They will now be able to use and access each other’s CKYC data, making customer on boarding simpler and quicker. By January 31, 2025, the Securities and Exchange Board of India (SEBI) has also instructed KYC Registration Agencies (KRAs) to upload capital market investor KYC information to CKYCRR.
The IRDAI’s efforts to integrate KYC data across financial sectors are in line with this directive, which went into effect on August 1, 2024. When insurance companies receive new information from CKYCRR, they are also required to update their KYC records. It is anticipated that this action by IRDAI and SEBI will simplify the KYC procedure, making it more cost-effective for financial institutions and improving the overall security of customer data.
IRDAI - The Insurance Regulatory and Development Authority of India is an independent and constitutional body which is answerable fir regulating and managing insurance and re-insurance sector of India.
