Central KYC is an initiative by Nepal Rastra Bank to create a unified system for customer identification across all financial institutions. It aims to simplify the KYC process, reduce paperwork, and enhance efficiency.
C-KYC Process in Nepal:
- Find a participating financial institution: Banks, insurance companies, mutual funds, broker account, mero share, and other financial institutions registered with c-kyc can help you complete the process.
- Submit your documents: Provide required documents like, Citizenship Certificate, Passport, Voter ID card, Driver’s license.
- Document Verification: Submitted documents are checked for authenticity.
- Receive your CKYC Number: After completation of verification you will receive your CKYC Number.
Documents Required for C-KYC in Nepal:
- Proof of Identity (Any one):
- Citizenship Certificate
- Passport
- Voter ID card
- Driver’s license
- Proof of Address (Any one):
- Citizenship Certificate
- Utility bill (not older than 3 months)
- Land ownership certificate
- Rental agreement
- Recent passport-sized photograph
- PAN (Permanent Account Number) or VAT (Value Added Tax) registration certificate for businesses
- Additional documents (may vary by institution):
- Source of income proof
- Bank statements
- Company registration certificate (for businesses)
- Tax clearance certificate
- For non-Nepalese citizens:
- Valid visa or work permit
- Recommendation letter from employer or sponsor
Importance of C- KYC in Nepal:
- Prevents financial crimes such as money laundering and terrorist financing
- Enhances the security of the financial system
- Helps financial institutions better understand their customers’ needs
- Complies with national and international regulatory requirements
Challenges and Developments:
- Nepal Rastra Bank (NRB), the central bank, has been working to strengthen C- KYC procedures.
- Balancing customer convenience with regulatory compliance remains an ongoing challenge.
Central KYC (C-KYC) is a streamlined approach to customer verification in the financial sector and It plays vital role in maintaining the integrity of the financial system.
