Banking Technology Insights - New CKYC Rules, IMF report on indian financial sector and more

1️⃣ Featured Insight -  CERSAI's New CKYC Compliance Rules: Unique IPs, Masked CKYC Numbers & API Changes

CERSAI (Central Registry of Securitisation Asse

t Reconstruction and Security Interest of India) has been doing a lot of regulatory changes in its process over the last few months. Here is everything you need to know about them:

💡Unique IP requirement

• Each Reporting Entity (RE) must use a unique IP address for CKYC Search and download API and SFTP access.

• Ensure that you are using a dedicated IP for accessing CKYC, else your API accesses might have been blocked.

• Go for solutions which can deploy on your cloud / on-premise services, so that you are able to seamlessly access CKYC services. 

💡Masking of CKYC number in search API response

• Earlier the full unmasked CKYC number was available in the response of the CKYC search API.

• Now, the CKYC number which comes in the API would be masked, i.e., only the last four digits of the CKYC number of the customer will be available after searching

• Instead of the unmasked CKYC number, the API would return a CKYC reference number.

• The CKYC reference number can be passed into the download API to download the KYC documents.

• If the CKYC download API call is successful, then you will get the full CKYC number as a response.

• Since CKYC search is free and the download API has a cost, there may be some extra cost implications for the RE.

💡How exactly CKYC Download is different from CKYC search?

CKYC download takes two inputs:

• The CKYC number tag may be used to provide either the CKYC number (14-digit numeric value) or CKYC Reference ID (14- digit alphanumeric value.

• Authentication factor of either Date of Birth or Pincode & Year of Birth or the mobile number.

A fallback mechanism must be created to do a download using all the three options, so that maximum coverage can be achieved.

2️⃣ Industry News Roundup

🗓️ RBI imposes fines to four P2P lending NBFCs. [Reference]

🗓️ RBI discourages NBFCs from giving perpetual credit lines to borrowers.Clarifies this is a domain of banks. [Reference]

3️⃣ Stats of the week

📊 In the fiscal year 2024, 63% of loans granted to the power sector originated from the three largest Infrastructure Financing Companies, a category of NBFC. This finding was highlighted in the International Monetary Fund's report, "India Financial System Stability Assessment."

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