Union Budget 2023 on KYC Process: Finance Minister Nirmala Sitharaman has made a big announcement in the budget regarding the Know Your Customer Process i.e. KYC Process (Know Your Customer). The government has set a target of making the KYC process easy. In the coming days, the KYC process will be done based on risk. At present, the 'one-size-fits-all' system of KYC is in force. Finance Minister Nirmala Sitharaman in her budget speech has also proposed to introduce a 'one-stop solution' for updating identity and address through the DigiLocker service.
Changes will be made to the rules
Finance Minister Nirmala Sitharaman said that the government will make changes in the Banking Companies Act, RBI Act, and IFSC Act. Apart from this, a provision will also be brought that foreign banks will be able to take over the banks opened in IFSC. Announcing this, the Finance Minister said that the KYC process will be simplified based on 'risk' instead of a 'one size fits all' approach. Financial sector regulators will be encouraged to develop the KYC process to meet the needs of Digital India.
Use of PAN as a Common Identifier
Finance Minister Nirmala Sitharaman also announced that business establishments would be able to use PAN as a common identifier for digital systems of government agencies. He said that while simplifying the KYC process, it would be made 'risk-based' instead of 'one-size-fits-all'.
He said that a one-stop solution would be provided to match and update the identity and address of individuals issued by various government agencies, regulators, and regulated entities. This will be set up using the DigiLocker service and Aadhaar as the primary identity.
What is DigiLocker
DigiLocker is an important initiative and flagship program of the Government of India under Digital India, which aims to make India digitally empowered. DigiLocker is aligned with the vision of Digital India to provide citizens with a secure documentation access platform on a public cloud. Under this facility, you get online cloud service, with the help of which you do not need to carry documents for your documentation. In this app, you can save your Aadhaar to your Driving License and Marksheet.
