Indian banks and insurers will launch a common customer identification system in August, with asset managers joining later, two regulatory sources and industry executives told Reuters on July 24. The new system, known as Central Know-Your-Customer 2.0 (CKYC), will only require the customer's consent for institutions to fetch data stored at a central registry.
India has spent more than a decade developing a system similar to those in Singapore and several European nations, where digital identity frameworks allow customers to access multiple financial products through a common verification process. The system will also help combat fraud through easier monitoring.
Records will carry a confidence score on data accuracy and whether a firm has verified the information. Financial institutions will seek customer consent through a one-time password to access verified records. Paras Pasricha, business head at Policybazaar, said insurance companies are building capabilities and expect some phase to go live in August.
Sources: Reuters, Economic Times (July 24, 2026)