KYC, eKYC, CKYC: Understand the Differences to Avoid Account Freezing

• KYC (Know Your Customer), eKYC (electronic KYC), and CKYC (Central KYC) are crucial for identity verification, fraud prevention, and anti-money laundering in the financial sector.
• Traditional KYC involves submitting physical government-issued identity and address proofs, requiring in-person verification and extensive paperwork.
• eKYC is a digital process utilizing Aadhaar, OTP, and biometrics for instant verification via mobile or computer, popular for SIM cards and quick bank account openings.
• CKYC acts as a centralized repository; once completed, a unique number is issued, eliminating the need for repeated document submission for new accounts across different institutions.
• These methods enhance financial system security, increase transparency, reduce fraud risks, and streamline customer service.

Why It Matters: Understanding KYC, eKYC, and CKYC is vital for seamless financial transactions and preventing account freezes.