Sri Krsna, in His Paramatma feature, lives in the hearts of all living beings in both the transcendental and mundane creations. As Paramatma, He witnesses all actions the living beings perform in all phases of time, namely past, present and future. Sri Krsna knows what the living beings have done for hundreds and thousands of past births, He sees what they are doing now, and therefore He knows the results of their present actions that will fructify in the future. As stated in the Bhagavad-gita, the entire cosmic situation is created as soon as He glances over the material energy. Nothing can exist without His superintendence. Since He sees even the abode for rest of the collective living beings, He is the original Narayana.