One Nation One KYC: Government may soon start single window system; Know its benefits

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KYC or knowing your customer is a process through which a bank or institution verifies the identity and address of an individual. The government has made KYC mandatory for most online services - whether you want to open a bank account, mobile connection, share market, mutual fund, or depository, KYC is mandatory for all. Everywhere you have to go through the process of KYC. If you do not complete this process then your work will get stuck. Now the question arises that if KYC is so important then why is the government not considering bringing a single-window portal or system for it?

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Union Commerce Minister Piyush Goyal has also said to consider bringing the KYC system on a single-window portal. He said, 'A common platform should be created regarding KYC, which can be used by different organizations. After the implementation of this system, people will not have to wander for KYC, their time will also be saved.

At an event of the National Stock Exchange (NSE), the Minister also emphasized creating a single-window portal for KYC so that a robust common KYC system can be established for stockbrokers, mutual funds, and depositories.

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Significantly, cases of fraud in the name of KYC are increasing rapidly. Even former Indian cricketer Vinod Kambli has become a victim of this. Most of the fraudsters first send messages to the users and then call and take personal information in the name of KYC. As soon as you provide your personal information, your bank account becomes empty. Single KYC will also help in preventing such frauds. It will enable common people to quickly connect with equity trading and banking institutions.

Having single-window KYC will help all financial institutions dealing with equity, trading, and banking attract more and more newcomers. Piyush Goyal also believes that having a single window KYC will give more customers to financial companies. 

This will make it easier to open a bank account, start trading in the stock market and get a credit card. More investors and common people will join the stock exchange and banking sector.