KYC will be simplified. Financial regulators will be encouraged to have KYC system fully amenable to meet the needs of Digital India.
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Budget 2023: Finance Minister Nirmala Sitharaman on Wednesday presented the Union Budget 2023 in Parliament. While presenting the Budget 2023 speech, Finance Minister Nirmala Sitharaman has several big announcements and has said that soon KYC (Know Your Customer) process will soon be simplified for bank customers.
FM Sitharaman said, “The KYC process will be simplified adopting a ‘risk-based’ instead of ‘one size fits all’ approach. The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India.”
This Union Budget is the last full-budget of the second term of the Modi government before the Lok Sabha elections in 2024. Like previous two years, this year’s Union Budget, too, is being presented in a paperless form.
What is KYC?
KYC or ‘know your customer’ is a mandatory verification procedure carried out by financial institutions with the goal of minimising illegal activities. Since 2004, the Reserve Bank of India has prohibited individuals to open a bank account, trading account or demat account without fulfilling the KYC procedure for KYC.
Documents required for KYC in India
Individuals (Documents acceptable as proof of identity/address)
- Passport
- Voter’s Identity Card
- Driving Licence
- Aadhaar Letter/Card
- NREGA Card
- PAN Card
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Minors
If minor is less than 10 years of age, ID proof of the person who will operate the account to be submitted. In cases where minor can operate the account independently, KYC procedure for identification/address verification as in the case of any other individuals would apply.
NRIs
Passport and Residence Visa Copies, duly attested by
- Foreign offices
- Notary Public
- Indian Embassy
- officers of correspondent banks whose signatures are verifiable through an authorized(A/B category Forex handling branch) branch of the Bank
