New Delhi: Whether it is to open a Demat account, take a loan, get insurance or withdraw money from EPF, now every time people have to go through the process of KYC and submit documents like Aadhaar-PAN. But soon people will get rid of the hassle of doing KYC for every work. Soon all financial transactions will have the same KYC usage.
Finance Minister Nirmala Sitharaman said the central government and various regulators are working on a method so that once a person has KYC, it can be used by all institutions and as per the need. He said this would make it easier to do business. Repeated KYC will not be required even if the business is separated. This will not only make paperwork easier, save time, and also facilitate all types of transactions.
Last week, the Finance Ministry discussed this in detail with the financial sector regulators. Once the new system is in place, the same KYC will be used for insurance, banking, mutual funds, and the stock market. This will make it easier to open a bank account and invest in the stock market and mutual funds.
The mutual fund industry has been demanding a single KYC for all the functions related to the stock market for a long time. He demands that the KYC that happens in the bank should be validated for the most part, because the possibility of fraud in the bank's investigation is the least.