How is the Know Your Customer (KYC) process going to be simplified? What did the Finance Minister say?

The Finance Minister wants to simplify KYC norms.

KYC process after Union Budget 2023

The Indian Finance Minister, Nirmala Sitharaman, announced the budget on February 1, 2023, and discussed easing the Know Your Customer process. Know Your Customer is the initial step to making financial investments, opening bank accounts, or even updating personal details. 

Also ReadBudget terms you must know.

Know Your Customer & Digital Locker

A KYC requirement and risk-based process will come into effect with the digital locker infra that the Government offers. This will be able to store crucial documents like AADHAR and PAN. Sitharam also said they would set up a one-stop solution for updating the digital lockers' identity documents. 

Fintech firms will boost the initiative by offering KYC through videos and allowing digital lockers to share and store documents for secure online access with financial institutions and the Government. The move will be for businesses and individuals. The PAN (permanent account number) will be the primary identifier for certain government facilities to ensure business operations are eased. 

Also ReadImpact of Budget on NRI's

Conclusion

CEO and MD of Edelweiss Asset Management, Radhika Gupta, believes that the changes in KYC norms and the simplification will help attract customers and investors more to the capital markets. She believes India is witnessing growth in saving financialization, and the easing of Know Your Customer norms will only speed up the trend. BankBazaar.com's CEO, Adhil Shetty, believes that the KYC ease norms support digitization in our country. The risk-based approach will make things better. Financial regulators will release updates after reviews to master Know Your Customer. He added that the document list for the DigiLocker will expand. 

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