KYC Update: Only one KYC for an insurance policy, bank account, and share market, know how this is going to be possible...

If you are going to take an insurance policy, open a bank account, or invest in the share market, your KYC (Know Your Customer) is done afresh every time. Even if you want to avail the benefits of government schemes, KYC has to be done. A lot of time is spent on this.

If you also want to get rid of the trouble of getting KYC done again and again, then there is good news for you. Now the government is considering changing the rules related to KYC and implementing Uniform KYC. In this, you will have to do detailed KYC only once and then you can use it anywhere.

Let us know what Uniform KYC is, who has proposed it, and when it can be implemented.

How does Uniform KYC work?
In Uniform KYC, 14 digit CKYC number will be issued. It can be used in institutions coming under the purview of regulators like RBI, SEBI, and IRDAI. This means that you will not need to do KYC again for a bank account, Fastag, share market, and insurance. Just by giving CKYC number your work will be done.

Where did the suggestion of uniform KYC come from?
The Finance Ministry constituted the Central KYC Records Registry (CKYCR) in the year 2016. Its purpose was to relieve the public from the problems of getting KYC done again and again. It is from here that the proposal for uniform KYC was made.

Recently, Finance Minister Nirmala Sitharaman also said that Uniform KYC can be done for verification of customers. With this, people will not have to face repeated difficulties of KYC.

The Financial Stability and Development Council (FSDC) believes that the process of conducting KYC repeatedly is quite tedious. If uniform KYC is implemented, expenses will also be saved over time. Then once the public gets KYC done in any financial institution, it can avail its benefits in other segments also.

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