Nepal Rastra Bank (NRB) is set to incorporate Centralized Know Your Customer (CKYC) into National ID cards. The mechanism will facilitate easier exchange of customer ID sharing among the licensed banks and financial institutions in Nepal (BF/Is). The bank revealed the plan while announcing its monetary policy for the Fiscal Year FY 2080/81.
NRB said that it will now start coordination for the development of CKYC and discuss with concerned agencies its implementation.
Also read: How to apply for National ID Card online in Nepal, Learn it here!
What will CKYC do?
Currently, in the absence of a CKYC (also called Central KYC), customers require to fill out a form and get a KYC for each different bank or financial institution. “When CKYC comes into operation, the need to create a separate KYC for each entity will end,” Gunakar Bhatta, spokesman for Nepal Rastra Bank said.
And joining it with the National ID card will further make the process more integrated. The National ID card has user information from all aspects so it would make it easier. But right now, we are at a preliminary stage so we can’t readily state what it would really mean,” he added.
CKYC has not been a novel practice though. Earlier, CDS and Clearing implemented Central KYC for the share market. CDS has started this service as per the integrated KYC working procedure approved by the Securities Board. CDSC has reached a deal with Vision Securities of Broker No. 34 to use Central KYC. Don’t miss: Central KYC test begins along with a new TMS
CDSC spokesman Suresh Neupane said that the CKYC will integrate new investors while also gradually doing the same for existing others. Once in effect, share market investors won’t have to create a KYC every time they sign up with a new agency.
However, there remains work to be done on how the two types of KYCs will go ahead. Neupane said that there has been no dialogue regarding CDSC and NRB on how to use or merge their CKYCs. “CDSC’s CKYC conforms to SEBON so we are looking into how we can coordinate with NRB’s CKYC,” he said.
