NEW DELHI: The central government plans to introduce a single KYC system for everything from opening a bank account to mutual funds to investing in mutual funds.
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| k.y.c |
In a recent meeting chaired by Finance Minister Nirmala Sitharaman, only KYC was present. A single KYC system is planned to verify customers in all sectors like banks, insurance, mutual fund, stock market etc.
Currently, when opening a bank account, investing in mutual funds, or enrolling in insurance, customers have to provide their KYC details. And it needs to be updated. If this is the only KYC, a customer does not need to provide their details every time.
This will reduce the procedure and time for banks to connect their customers to the bank. It is reported that the government has formed an expert committee under the leadership of Finance Secretary Somanathan to frame the regulations for the single KYC system.