New system may reduce repeated KYC checks for NRIs using Indian banks and investment firms.
Dubai: Indian expatriates in the UAE may soon face fewer repeated identity verification requirements when opening or updating financial accounts in India, with an upgraded Central Know Your Customer (CKYC) system expected to begin implementation in August 2026.
Called Central KYC 2.0, the new framework will enable participating financial institutions to access a customer’s verified identity details from a central registry, subject to the customer’s consent. The move could reduce the need for non-resident Indians to repeatedly submit documents such as passports, proof of address and photographs to multiple banks, insurers and investment firms.
Banks and insurance companies are expected to participate in the initial phase, while mutual funds, brokerages and other regulated financial entities are likely to be integrated later in 2026, according to regulatory sources and industry executives cited by Reuters.
“India’s much-awaited Central Know Your Customer (CKYC) 2.0 initiative is expected to go live in August 2026,” said James Mathew, CEO and Managing Partner at UHY James Chartered Accountants LLC. Mathew is a former chairman of the Indian Business and Professional Council Dubai and the Dubai Chapter of the Institute of Chartered Accountants of India.
The upgraded CKYC framework will be rolled out in phases from August 2026, beginning with banks and insurance companies, followed by other regulated financial institutions over the course of the year.
CKYC 2.0 to benefit NRIs
Non-resident Indians (NRIs) often maintain multiple financial relationships in India, including NRE and NRO bank accounts, fixed deposits, insurance policies, pension products, mutual funds and brokerage accounts.
At present, each financial institution may require customers to complete separate onboarding or periodic KYC procedures. This can lead to repeated submission of the same identity and address documents, even when the information has already been verified by another regulated entity.
CKYC 2.0 aims to make verified customer records more easily accessible and reusable across India’s financial ecosystem. “This initiative reinforces India’s most significant step towards simplifying customer onboarding and reducing repetitive compliance processes,” Mathew said.
“India’s Central KYC (CKYC) framework is a centralised system that stores verified customer identity records and assigns each customer a unique KYC identifier.”
This identifier already exists under the current CKYC framework. The upcoming CKYC 2.0 initiative is designed to upgrade the existing registry and enhance its functionality, rather than introduce India’s first CKYC number.
The Reserve Bank of India defines a KYC Identifier as a unique number or code issued to a customer by the Central KYC Records Registry. Customers can share this identifier and provide consent to a regulated financial institution to access their valid KYC details from the registry.
Complete KYC once — with exceptions
The broader goal of CKYC 2.0 is to reduce repeated KYC procedures across financial institutions. However, it does not mean banks or other regulated entities will never request additional information or documents when required.
“Rather than submitting the same documents repeatedly to multiple financial institutions, the upgraded CKYC framework will allow customers to complete the KYC process once and enable authorised entities to access their verified records with the customer’s consent,” Mathew said.
Under the framework reported by Reuters, financial institutions will seek customer consent through a one-time password (OTP) before accessing verified KYC records. Once authorised, the institution can use the available information to open accounts or update existing customer details.
Additional documents or updated information may still be required if the records stored in the system are outdated, incomplete or do not comply with current KYC requirements. Financial institutions may also request further verification if a document has expired, the customer’s current address needs to be confirmed, enhanced due diligence is required or additional risk assessment is necessary.
This distinction may be particularly relevant for NRIs whose overseas address, tax residency status, passport details, visa information or contact details have changed.
Existing Reserve Bank of India (RBI) regulations also require customers to undergo periodic KYC updates. The prescribed frequency is at least once every two years for high-risk customers, once every eight years for medium-risk customers and once every 10 years for low-risk customers. Financial institutions may carry out additional reviews more frequently based on their internal risk policies.
CKYC 2.0 is intended to make these verification and updating processes more seamless and efficient. However, it does not remove financial institutions’ legal obligations to understand their customers, maintain accurate records and manage potential risks.
Services covered under CKYC 2.0
The central registry is operated by the Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI).
“The framework is managed by CERSAI and is designed to support usage across banks, insurance companies, mutual funds, pension funds and other regulated financial institutions,” Mathew said.
According to Reuters, Indian banks and insurers are expected to begin adopting the upgraded CKYC framework in August 2026. Mutual funds, brokerages and other capital market entities are likely to be integrated later in the year as regulators address sector-specific requirements.
The Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority of India (IRDAI) are jointly involved in the initiative, the report said.
Protean eGov Technologies is developing the upgraded platform. In December 2024, CERSAI awarded the company a contract worth approximately Rs 161 crore for the platform’s design, development, implementation, operations and maintenance. The agreement has a tenure of 69 months.
How CKYC 2.0 improves on CKYC 1.0
India’s existing central KYC registry holds around 1.2 billion customer records, according to Reuters. However, issues such as duplicate entries, incomplete details and inconsistent data quality have affected the wider adoption and effectiveness of the system.
CKYC 2.0 aims to address these challenges through enhanced verification processes and improved deduplication mechanisms.
Under the upgraded framework, records are expected to include a confidence score reflecting the reliability of the information and whether it has been verified by a financial institution. The system is also designed to incorporate stronger consent controls and support near real-time updates to customer records.
Earlier reports indicated that the planned upgrades could include DigiLocker integration, direct verification with document-issuing authorities and artificial intelligence-enabled photograph matching to identify potential duplicate records.
“One of the key advantages of a centralised KYC model is that it reduces duplication, improves data consistency and enhances the customer experience, while allowing financial institutions to focus more on risk assessment and ongoing monitoring instead of repetitive data collection,” Mathew said.
What should NRIs do now?
NRIs do not need to complete any new procedure solely because CKYC 2.0 is expected to begin rolling out in August.
Customers can start by checking whether they already have a KYC Identifier. Under RBI guidelines, the institution that creates the identifier is required to communicate it to the customer. The identifier can also be accessed through the official CKYC portal.
NRIs should ensure that their Indian financial institutions have updated records, especially details such as their overseas address, mobile number, email address, passport information and residency status. Any additional documentation requirements will depend on the customer’s existing records, the financial product involved and the institution’s due diligence obligations.
Customers should also wait for communication from their respective banks, insurers or investment providers. Since CKYC 2.0 will be introduced in phases, the upgraded services may not become available across all financial institutions simultaneously.
UAE exploring a similar system
The UAE Central Bank announced in April that it was developing a nationwide unified Know Your Customer (eKYC) platform following a technical partnership agreement with global technology firm Norbloc AB.
Mathew said India’s CKYC model could serve as a potential reference for the UAE, where individuals and businesses often need to submit similar KYC documents separately to banks and professional service providers.
“Despite being one of the world’s most digitally advanced economies, the UAE continues to see repeated KYC and onboarding requirements across different sectors,” he said.
“Banks, regulators and professional service firms often collect similar documentation independently, leading to repeated submissions of the same information. This can extend onboarding timelines and increase operational workloads — factors that remain important in discussions around improving the ease of doing business.”
Mathew said a centralised or interoperable KYC system could enable businesses to complete the verification process once and allow authorised institutions to access the verified information through controlled permissions.
“Such a system would reduce duplication while maintaining risk-based compliance, customer due diligence and regulatory oversight,” he said. “The goal is not to lower compliance standards, but to make the process more efficient, consistent and less repetitive.”
Mathew noted that the UAE had previously explored the concept of a centralised KYC infrastructure, although it had not moved to full implementation. He said the country’s advanced digital ecosystem and regulatory technology capabilities could support renewed consideration of such a model.
“India’s CKYC framework offers a valuable example of how technology and standardisation can work together to strengthen regulatory objectives while improving the overall customer experience,” he said.
