New Delhi: The government on Wednesday proposed to simplify the KYC process by adopting a ‘risk-based’ approach. At present, the ‘one size fits all’ system of KYC is in force. Finance Minister Nirmala Sitharaman in her budget speech also proposed to introduce a ‘one stop solution’ for updating identity and address through the DigiLocker service. He also announced that business establishments would be able to use PAN as a common identifier for digital systems of government agencies.
“The KYC (Know Your Customer) process will be simplified from ‘one-size-fits-all’ to a ‘risk-based’ approach,” Sitharaman said.
Financial sector regulators will also be encouraged to have a KYC system to meet the needs of Digital India. One stop solution will be provided to match and update the identity and address of individuals issued by various government agencies, regulators and regulated entities, he said. It will be set up using the DigiLocker service and Aadhaar as the primary identity.
