The federal government has shaped a committee led by finance secretary TV Somanathan to standardise and guarantee interoperable KYC norms throughout the monetary sector.
We’re contemplating utilizing multi-level secondary identifiers resembling PAN, Aadhaar, and distinctive cell quantity (UMN) for joint accounts, a senior financial institution government was quoted as saying by ET.
Banks coping with Knowledge
These secondary identifiers will assist hint a number of accounts of a person if they aren’t linked and have been opened utilizing completely different KYC paperwork. Moreover, it will facilitate the extension of the account aggregator (AA) community to joint accounts.
At the moment, the AA framework solely consists of single-operated particular person accounts for sharing monetary info. An account aggregator retrieves or collects details about a buyer’s monetary property from the holders of such info and presents it to specified customers.
Presently, a passport, Aadhaar, voter card, NREGA card, PAN card, or driving licence can be utilized to open a checking account.
Final month, the Finance Stability and Improvement Council (FSDC) mentioned uniform KYC norms, inter-usability of KYC information, and simplification and digitalisation of the KYC course of.
“Within the final 12 months, we, by way of the Indian Banks’ Affiliation, or IBA, shared our concern with the RBI on slackened KYC norms by fintech firms,” stated one other banker. Additionally they highlighted that a few of these corporations don’t report back to credit score bureaus, which will increase the danger for different lenders counting on credit score bureau information.
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