Digital KYC Will Take Place of All Financial Instruments

Digital KYC

Recently, in a meeting by the Financial Stability & Development Council (FSDC), the finance ministry held that there shall be a single digital KYC process for all the financial instruments. Along with SEBI, RBI, PFRDA, and IRDAI, it suggested to streamline the KYC framework in a simple way.

It also declared that a special drive to facilitate the settlement of unclaimed deposits across all the financial segments should be conducted by Regulators.

The vision is to pave a way for digital India and promote the experience of the retail investors.

The launch of Bimakrit Bharat is one of the stepping stones in this initiative. Chaired by Union Minister Nirmala Sitaraman and other dignitaries of the government officials claimed the regulators should focus on reducing compliance burden and ensure streamlining the environment. In addition to that, the cyber preparedness of IT systems should be ensured.

Overall, this initiative can truly change the process of the digital economy and make the financial instruments more safe and compatible to the retailers.