Uniform KYC: The trouble of repeatedly getting KYC done for banks and any financial work is going to end soon. The Central Government is preparing to implement such a system very soon, in which you will not need to get KYC done again and again for different services.
New Delhi. Whether opening a bank account or investing in the stock market, now people everywhere have to go through the KYC process. With the digitalization of banking and finance services, KYC process has now become necessary everywhere. For many digital services, people have to go through the KYC process again and again, which is very troublesome. To save time and resources, the Government of India is soon going to make a major change in the KYC process.
In fact, the Financial Stability and Development Council (FSDC) has recommended the government to implement ‘Uniform KYC’ in the country, which is claimed to simplify the KYC process. Let us know what is Uniform KYC and what changes are going to come from it…
FSDC advised to start uniform KYC
KYC (Know Your Customer) is a method of identification of any customer. Every customer has to go through KYC to open a bank account, mutual fund and life insurance. In many cases this is done repeatedly. Many times, in the name of updating, your documents are asked for under KYC. This process involves a lot of paperwork, time and cost. Now to end this hassle, the Financial Stability and Development Council (FSDC) has advised to start uniform KYC. With its help, for any service in the financial sector, you will have to go through the KYC process only once.
Expert committee preparing the framework of rules
According to the report of Economic Times, the Central Government has constituted an expert committee under the chairmanship of Finance Secretary TV Somanathan, which will prepare the framework of rules regarding Uniform KYC. During the recent meeting with FSDC, the Finance Minister had also suggested simplifying the KYC process. The government is trying to make financial services easier.
Know how uniform KYC will work
At present, while opening a bank account, you have to get KYC done along with your identity card and along with this, if you want to invest in the stock market, then you need to get KYC done separately again. This requires both hard work and time. The government wants to remove this obstacle.
In the new system you will be given a 14 digit CKYC number. Also, your KYC record will be made available everywhere apart from SEBI, RBI, IRDAI and PFRDA. With this, you will not have to get KYC done everywhere, because your information will reach different institutions through CKYC number.
