India has prepared to launch Central Know-Your-Customer 2.0, a system that will let banks and insurers share verified customer data with consent.
According to Reuters, the system, known as Central KYC 2.0 (CKYC), will require only a customer's consent for participating institutions to retrieve identification data held in a central registry, removing the need to resubmit documents when opening an account or updating details.
India has worked for more than ten years to build a framework comparable to digital identity systems used in Singapore and several European countries, where a single verification process gives customers access to multiple financial products. The Reserve Bank of India, the Securities and Exchange Board of India, and the insurance regulator are jointly overseeing the CKYC project, though none of the three responded immediately to requests for comment.
In addition, according to regulatory sources, the system is also expected to support fraud monitoring by making it easier for institutions to track customer records across the financial sector.
Addressing gaps in the existing registry
India already operates a central KYC registry holding around 1.2 billion customer records, but adoption has been limited by concerns over data quality, including duplication and missing information. The Reserve Bank of India has not accepted records sourced from the existing registry, meaning investors have had to file identical documents separately to access different financial products.
Under CKYC 2.0, records will carry a confidence score reflecting the accuracy of the data, alongside an indication of whether the information has been verified by a financial institution. Institutions will need to request customer consent through a one-time password before accessing verified records, according to an operating guidelines document reviewed by Reuters.
Rakesh Dosi, the chief business and product officer of Protean eGov Technologies, the company building the system, said the confidence score would indicate not only that data has been shared with consent, but also how reliable that data is.
Market context and expected impact
The rollout follows a period in which India has largely achieved basic banking access: 89% of adults held a bank account in 2024, according to World Bank data. Ownership of mutual funds, insurance, and pension products remains comparatively low, according to regulatory data.
DP Singh, joint chief executive of SBI Funds Management, said CKYC could substantially widen the investor base, noting that its parent, State Bank of India, holds 500 million bank accounts. The official added that the framework could be extended to the asset management industry within four months.
Furthermore, Paras Pasricha, business head, Policybazaar, an insurance marketplace operating in India, said the system allows records to be updated in near real time, and that insurers are working towards a phased go-live beginning in August 2026.
Capital markets firms, including mutual funds and brokerages, are expected to gain access to the system later in 2026 as regulators finalise sector-specific requirements.
