KYC Rules to Change: If Uniform KYC norms are implemented, then you will not need to do separate KYC for bank account and separate for insurance.
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 take advantage 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 an account but you also have to update KYC from time to time. During this time, 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 do KYC updates repeatedly and for different purposes.
But just think, what would it be like if the hassle of frequent KYC update online ends? If you also want to get rid of the trouble of frequent KYC updates, then there is a good news for you. To reduce this hassle and trouble, 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)
The full form of KYC is Know Your Customer… It means that it is a way of verifying the identity of the customer. We have to go through the KYC process in money related work. 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 Uniform 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 the institutions coming under the purview of regulators like RBI, SEBI. Can be done. That means you will not need to do KYC again and again for bank account, Fastag, share market and insurance. Instead of KYC process, your work will be done by just giving CKYC number.
If we understand it in more simple words, then you will have to do KYC only once and then you can use it anywhere.
When and how was the proposal for Uniform KYC put forward?
Actually, the Finance Ministry had formed the Central KYC Records Registry (CKYCR) in the year 2016. Its purpose is to provide relief to the common people from the troubles related to KYC. It is from here that the proposal for uniform KYC was made. Uniform KYC was discussed recently in the 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 repeated difficulties of KYC.
According to reports, the Central Government has constituted an Experts Committee under the chairmanship of Finance Secretary TV Somanathan. This committee will prepare the format regarding uniform KYC rules.
Benefits of Uniform KYC?
If Uniform KYC is implemented, then you will not need to get separate KYC done for bank account and insurance. In Uniform KYC, the KYC process will be simplified and one will get rid of 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 the paperwork 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 different financial institutions including banks in address verification through the KYC process.
