New Rules: KYC means Know Your Customer, this is the customer identification process. If put in simple words, all the details related to who the customer is and where he lives is called KYC.
Big news related to the common man has come. New KYC rules may come soon. Actually the meeting of FSDC i.e. Financial Stability and Development Council has ended. Uniform KYC rules, KYC records have been recommended in this meeting. There is a preparation to emphasize on making KYC simple and digitalized. Let us tell you that the 28th FSDC meeting was held under the chairmanship of Finance Minister Nirmala Sitharaman.
Finance Minister has already given suggestions on KYC-
While presenting the budget in the year 2023, Finance Minister Nirmala Sitharaman had said that a one-stop solution can be used to authenticate the identity and address of individuals.
The Finance Minister had said that various government agencies, regulators and regulated entities should be provided a one-stop solution for matching and updating identity and address through DigiLocker service and Aadhaar.
What is KYC – Under this process, customers submit photo copies of all the necessary documents like Aadhar Card, PAN Card, Voter Card, Passport etc. along with the KYC form. All companies, banks, government schemes and financial institutions collect all the documents so that in case of any kind of accident in future, the person can be identified.
It is important for everyone to get KYC done. In a way, KYC strengthens the relationship between the bank and the customer. Without KYC, investment is not possible, without it it is also not easy to open a bank account.
