Know Your Customer: Uniform KYC has been discussed in the recently held Financial Stability and Development Council (FSDC) meeting.
KYC Updates: Banks are preparing to further strengthen the KYC process. To make KYC standards stricter, banks are going to add more verification layers to identify accounts and account holders. According to the plan, KYC will be updated in one or more accounts or joint accounts linked to one phone number. The bank can further verify the customers who have more than one account and have opened the account with different documents.
Customers with multiple accounts will be verified!
This report has come out quoting the Economic Times. A bank official said that multi-level secondary identifiers such as PAN, Aadhaar and unique mobile number are being considered for joint accounts. In the coming days, more verification can be done for customers having multiple bank accounts and banks can demand more documents for KYC from such account holders.
KYC rules are being ignored
The government has formed a committee under the chairmanship of Finance Secretary TV Somanathan which is looking into ensuring interoperable KYC norms across the financial sector. There have been allegations of ignoring KYC rules on the part of fitness companies. Due to non-compliance of regulatory and KYC rules, RBI has taken strict action against Paytm Payments Bank. But banks do not want to take any more risk regarding this.
Preparation for uniform KYC
At present, banks accept passport, Aadhaar, voter ID card, NREGA card, PAN card, driving license as proof from customers for opening an account. But in case of joint accounts, banks can demand PAN, Aadhaar and unique mobile numbers together as multi-level identifiers. Uniform KYC was discussed in the recent meeting of the Financial Stability and Development Council (FSDC) chaired by Finance Minister Nirmala Sitharaman.
