Union finance minister Nirmala Sitharaman on Tuesday said work is underway for implementing a common Know Your Customer (KYC) which can be used for carrying out various financial transactions across institutions.
Speaking at the FICCI Leads 2022 conference on Tuesday, Sitharaman said 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, PTI reported.
The minister added that the government and the regulators are working to bring it all together, and bring in ease of doing business. Last week, the finance minister and financial sector regulators had discussed the issue of a common KYC process for banking, insurance and capital markets.
When introduced, a common KYC will reduce paper work for various services like opening a bank account, making new investments for opening demat accounts etc.
The finance minister also said the value of unique payments interface (UPI) transactions crossed ₹10.62 lakh crore in July through 6.28 billion transactions. In the last fiscal, more than 46 billion transactions were processed amounting to over ₹84.17 lakh crores.
The minister said the UPI’s own target is a billion transactions per day in next five years.