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New Delhi: KYC has become an important part of our lives. Whether you want to open a bank account, invest in the stock market or mutual fund, or avail the benefits of any scheme, or are going to buy an insurance policy. …, KYC is mandatory for everyone. It is necessary to get KYC done for every work. Without KYC, you will neither be able to open a bank account nor avail the benefits of any government scheme. Not only at the time of opening the account but you will also have to update KYC from time to time. During this period, KYC is done afresh every time. A lot of time is wasted in this. At the same time, it becomes difficult for many people to update KYC repeatedly and for different purposes.
But just think, how would it be if the hassle of repeatedly updating KYC online ends? If you also want to get rid of the trouble of updating KYC again and again, then there is a good news for you. To reduce this hassle and hassle, preparations are being made to change the KYC rules. Now the government is going to implement new rules related to KYC. Under this, consideration is being given to changing these rules and implementing uniform KYC.
Let us know what is Uniform KYC, how will it work, who has proposed it, when can it be implemented and what are its benefits?
What is Uniform KYC? (What is Uniform KYC)
Full form of KYC is Know Your Customer… It means that it is a way of verifying the identity of the customer. In money related matters we have to go through the KYC process. Now the government is preparing to further strengthen the KYC process. With its help, you will have to complete the KYC process only once.
In the same KYC norms, all your KYC documents will be submitted only once and after that you will be given a 14 digit CKYC identification number which can be used in institutions under the purview of regulators like RBI, SEBI. It is possible That means you will not need to do KYC again and again for bank account, Fastag, stock market and insurance. Instead of KYC process, your work will be done by just giving CKYC number.
If you understand it in more simple words, you will have to do KYC only once and then you can use it anywhere.
When and how was Uniform KYC proposed?
Actually, the Finance Ministry had constituted the Central KYC Records Registry (CKYCR) in the year 2016. Its purpose is to provide relief to the common people from the problems related to KYC. It was from here that the proposal for a similar KYC was made. Uniform KYC was discussed at the recent meeting of the Financial Stability and Development Council (FSDC) chaired by Finance Minister Nirmala Sitharaman. In which the Finance Minister has talked about bringing Uniform KYC (Uniform KYC India) for customer verification. With this, people will not have to face KYC problems again and again.
According to reports, the central government has constituted an expert committee under the chairmanship of Finance Secretary TV Somanathan. This committee will prepare a draft regarding uniform KYC rules.
Benefits of Uniform KYC?
If Uniform KYC is implemented then you will not need to do separate KYC for bank account and insurance. Uniform KYC will simplify the KYC process and eliminate the hassle of going through the same KYC process again and again. Many tasks can be completed with a single KYC.
The benefit of which will be that paper work will be reduced and expenses will also be saved over time. This will not only benefit the common people but will also make it easier for various financial institutions including banks to verify the address through the KYC process.