Working To Implement Single KYC For All Financial Transactions: Nirmala Sitharaman

Nirmala Sitharaman said the Centre is working on implementing a common KYC which can be used for carrying out various financial transactions. It will reduce paperwork for multiple services.

By Radha Basnet
Wed, 21 Sep 2022 12:17 PM IST
Minute Read
Working To Implement Single KYC For All Financial Transactions: Nirmala Sitharaman
Union finance minister Nirmala Sitharaman (ANI File Photo)

Union finance minister Nirmala Sitharaman on Tuesday said the work is on for implementing a common Know Your Customer (KYC) which can be used for carrying out various financial transactions across institutions.

“There is a central repository which takes care of central KYC. The government is working in such a way that once a customer has given his/her KYC, it can be applicable at various institutions at various times for various requirements. The customer may not have to carry out KYC check each time if the businesses are slightly different,”  Sitharaman said.

A common KYC will reduce paperwork for people for multiple services like opening a bank account, making new investments or opening a Demat account.

Speaking at the FICCI leads 2022 conference on Tuesday, said the Centre is working to bring it all together which will bring about ease of doing business.

The Union Minister said the unique payments interface (UPI) reported 6.28 billion transactions worth Rs 10.62 trillion in July 2022.  In the last fiscal, more than 46 billion transactions were processed amounting to over Rs 84.17 lakh crores.

She further said that UPI-based transaction is expected to reach one billion per day in the next five years. "So UPI's own target is... a billion transactions a day in next five years. So it's readying itself for that kind of an escalation in the transaction," she said.

Addressing the session on 'Future of Financing' at FICCI LEADS 2022, Sitharaman said that the future of finance is going to be Volatile, Uncertain, Complex and Ambiguous (VUCA). The ‘Future of Financing’ will be driven more and more through banking and related services and account aggregators will play a crucial role in it.

"Account aggregator system has been adopted by 21 banks including public sector banks," she added.

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