Finance Minister Nirmala Sitharaman on Tuesday said that work is in progress to create a common KYC (Know Your Customer) for financial transaction.
“There is a central repository which takes care of central KYC. We are also now working in such a way that once you have given your KYC, it can be applicable at various institutions at various times for various requirements that you may have. And you may not have to do it each time, even if the businesses that you’re engaged in are slightly different,” Sitharaman said while addressing FICCI Leads 2022 event here.
A common KYC will reduce paper work for common man for opening bank account or making new investment or opening demat account, among other things.
The issue of a common KYC process for banking, insurance and capital markets was discussed at the meeting of the financial sector regulators and the finance minister last week. Sitharaman said the government and regulators were working to bring it all together, which will bring about ease of doing business.
Success of UPI
Speaking on the success of UPI, she said that in July, UPI processed 6.28 billion transactions worth ₹10.62 trillion, which is 7 per cent higher than June. “UPI target is to cross 1 billion transaction per day in next 5 years,” she noted.
Sitharaman further stated that the future of finance will be driven more and more through banking and related services and account aggregators would play a crucial role in it. “Account aggregator system has been adopted by 21 banks including public sector banks,” she added.
The Minister emphasised that the link between start-ups, fintech and private equity is visible. There are 6,636 start-ups and 21 unicorns in fintech sector, and private equity has helped them to become start-ups. “Private equity is pushing them (start-ups) quickly on the path of progress,” she said.