Now you don't need to do KYC again and again, just do this

 Uniform KYC: Be it opening a bank account or investing in the stock market, people everywhere these days have to go through a lengthy KYC process. Often, people have to undergo KYC repeatedly for digital services. This process takes a lot of time due to which people get frustrated. But we want to let you know that now the hassle of doing your KYC time and again is going to end soon as the Indian government is going to bring a big change in it soon. Let's know it in detail.

Uniform KYC 2024

The hassle of repeatedly doing KYC process for banks and various financial services is going to end soon. The central government is preparing to implement such a system soon, in which you will not need to do KYC repeatedly for various services. For many digital services, people often have to go through a lengthy KYC process, which is very cumbersome. In order to save time and resources, the Government of India is going to make significant changes to the KYC process soon.

In fact, the Financial Stability and Development Council (FSDC) has recommended the government to implement a 'Uniform KYC' across the country, which it claims will simplify the KYC process. Please let us know what Uniform KYC entails and what changes it will bring.

FSDC advised to start uniform KYC

KYC (Know Your Customer) is a way of identifying the customer. Every customer has to do KYC to open a bank account, invest in mutual funds and buy life insurance. Often, this process is repeated again and again. Often, you are asked for your documents in the name of KYC update. This process involves a lot of paperwork, time and expense. To overcome this problem, the Financial Stability and Development Council (FSDC) has recommended implementation of uniform KYC. With it, you only need to complete the KYC process once for any service in the financial sector.

An expert committee framing the rules

An expert committee chaired by Finance Minister TV Somanathan has been constituted by the Finance Secretary, which will prepare a framework for uniform KYC rules. In a recent interaction with FSDC, the Finance Minister also suggested simplifying the KYC process. The government is trying to simplify financial services.

Know how Uniform KYC will work

Currently, while opening a bank account, you have to do KYC with your identity card, and if you want to invest in the stock market, you have to do KYC again separately. This requires both trouble and time. The government wants to remove this barrier.

In the new system, you will be assigned a 14-digit CKYY number. Also, your KYC records will be available from everywhere except SEBI, RBI, IRIDA and PFRDA. With this, you will not need to do KYC everywhere, as your information will reach different organizations through the CKYC number.