Central database may be used for financial oversight, risk monitoring

New Delhi: The government plans to leverage the Central Registry of Securitisation Asset Reconstruction and Security Interest of India's (Cersai) expanding database to further strengthen credit oversight and risk monitoring in the financial sector.

The move coincides with the phased rollout of the Central KYC Records Registry, or CKYCRR 2.0, said people familiar with the developments. "There is a view that Cersai (central online database)can expand its role from only being limited to a registry-maintaining body to a more advanced data-driven analytical institution," said an executive aware of the developments. The repository body can consider developing its internal strength and issue analytical reports and products on the lines of the Insurance Information Bureau of India, or IIB, he said. The insurance industry currently utilises IIB products such as Sudharshan and Kavach for underwriting, claims processing and fraud detection.

"These are very early discussions, but the idea is to use this data across various segments including customer insights so that financial institutions can offer more targeted products besides fraud prevention," the executive said. Last week, the Reserve Bank of India issued draft guidelines on standard operating procedure (SOP) to be deployed by banks for placing temporary debit holds on amounts or accounts linked to money-mule activity and cyber-enabled financial frauds.


The government had in the FY26 budget announced plans to simplify KYC norms and start a streamlined mechanism for periodic updating, particularly for low-risk customers. "Some of these improved models have already been rolled out, and now, as we have more real-time updates, such datasets can also be used to generate insights on interconnected exposures and potential fraud risks," said another executive, requesting anonymity.

Earlier this month, in a letter to all reporting entities, the Central KYC Records Registry said CKYCRR 2.0 will go live soon and that they should ensure sufficient transactions are undertaken during the pilot testing window to establish the robustness of the end-to-end process. It also issued standard operating procedure guidelines on cyber incidents reported or identified pertaining to unauthorised access to KYC information on CKYCR.