Central KYC registry is ‘master key’, banks, govt must unlock its full potential: RBI Governor

Reserve Bank of India (RBI) governor Sanjay Malhotra Monday urged the Central government and banks to make full use of CKYCR, or the Central KYC Records Registry, to ensure seamless documentation and interoperability across institutions. He also emphasised the need to strengthen grievance redressal mechanisms and adopt technology for better consumer protection.

Terming CKYCR as the “master key” for India’s financial sector, Malhotra said, “I had on an earlier occasion urged the banks to enable the use of CKYC. This is something that the government needs to do, but at the same time, the banks also have a significant role to play in this matter. I urge all of you to make effective use of the CKYCR.” 

CKYCR serves as a central repository for KYC (know your customer) records in the financial sector, which enables the inter-usability of a customer's documentation details across various regulated entities. “The government has already come out with a framework so that the KYC, once done by one regulated entity of any regulator in the financial sector can be used by the regulated entity of any regulated entity of any financial sector regulator,” the RBI governor added at the inaugural address of FIBAC 2025, jointly organised by BCG, FICCI and the Indian Banks’ Association.

He also touched upon the grievance mechanism of the banking system. “We need all parties, including the regulated entities and the RBI, to work together to establish an effective grievance redressal mechanism where officers are suitably empowered to make decisions in the best interest of the consumer. We, on our part, are in the process of reviewing two frameworks,” he said at the event.

He further stated that the internal ombudsman framework at the level of the REs needed to be strengthened further so that complaints can be resolved effectively within the institution itself. "We have had discussions with IBA in this regard. We'll be issuing a draft for consultation, and we will look forward to your suggestions," he said.

Similarly, RBI's integrated ombudsman system, which handles grievances that escalate upwards to the central bank, is also being reviewed and will be further strengthened going forward.