Your bank account could become the standard know-your-customer proof serving as the common identity for all other savings and investment products as the government moves towards a uniform and simpler KYC process across all financial sectors.
So if you want to purchase a life insurance product, mutual funds, insurance or pension you may just have to quote your bank account number, which will serve as the KYC guideline. Sources said that the government is looking into this proposal.
At present, customers have to provide and comply with various layers of scrutiny for different financial products. The KYC norms differ from product to product as well.
Finance minister Arun Jaitley has already directed financial sector regulators, including the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI) and Insurance Regulatory and Development Authority (IRDA), to chalk out a plan to move towards a single uniform KYC norm.
“As we seek greater financial inclusion, the need to move towards a single uniform KYC pattern is critical and one of the proposals that is under consideration is to consider the KYC scrutiny of a customer while opening a bank account should hold as the common KYC norm for other products as well,” a senior official government official told Hindustan Times.
A meeting was recently held between the government and other stakeholders including the regulators to discuss the KYC issue.
The government is also moving towards making Aadhaar number mandatory for filing income tax returns. Besides, the permanent account numbers which are not linked to Aadhaar will eventually become invalid.
Banks may soon have to seek their customers’ Aadhaar number for identity proof. The Supreme Court said on Monday that Aadhaar can be made mandatory for opening new bank accounts.