Whether the profile is consistent and the information is correct.
They also check with external databases for things like whether you’re on blacklists. If that’s clear, the profile is okayed and given a permanent ID. Effectively, every company in the industry will get a permanent ID. If you want to do business with a counterparty who is also in the system, then you send a request to that counterparty using their code, and if they accept the code then both are linked and can see each other’s KYC information because that party also needs to do a KYS or Know Your Supplier. So you can always say that KYC stands for Know Your Counterparty. Once you’re activated there is still one more step to complete, which is you need to take the physical document, sign it, and have it verified with your industry body.
Do companies have any reservations about MyKYCBank? Are they hesitant to join in?
I don’t think the companies are hesitant. Some of the larger companies have multiple structures etc., for them some of these things are new, so they may take a little while in getting all the information. I don’t think there will be more than a very small fraction which will be hesitant, because the industry, at least in India, is straightforward. In places where you have multiple layers and structures, there might be some hesitation from those companies. But again, it is something which is the law of the land; most companies are going in for this, so it’s something they will have to do at some point in time. Today, you have Xerox copies, faxes or scans of passports, etc. which are trading hands; instead of that, this process of sharing information will be done in a secure fashion on MyKYCBank. Once in the website, at any point in time you can see a two-page document which is a profile of the counterparty. You can send a request to see background documents which have been collected; once the counterparty accepts it, they will be emailed to you.
How long does the registration process take?