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The Modi 3.0 government is very serious about rolling out uniform KYC in the financial services industry.
In this context, a review meeting was held in New Delhi, which was chaired by Dr. Vivek Joshi, Secretary, Department of Financial Services (DFS).
Senior executives of Central Registry of Securitisation Asset Reconstruction and Security (CERSAI) and Unique Identification Authority of India (UIDAI) attended this meeting to discuss issues related to central KYC and Aadhaar seeding.
A few days back, SEBI asked KYC registration agencies (KRAs) to upload verified KYC details of all capital market investors in Central KYC Records Registry (CKYCRR) starting from August 1, 2024.
With this, details of existing clients will have to be uploaded in Central KYC Records Registry (CKYCRR) system, which is run by CERSAI within six months i.e. January 31, 2025.
Insurance companies and pension fund companies are already using CKYCRR to verify KYC details. This opens door for mutual fund distributors to use CKYC data of insurance and pension funds. However, banks are yet to upload KYC details in this system. If they start uploading KYC details of their customers, only bank account will be sufficient to invest across all financial products.
Dr. Joshi said that while significant progress has been made in expanding social security and deepening financial inclusion in the country through various flagship schemes of the government, he urged the public sector banks to industriously work towards reaching the last mile to further strengthen financial inclusion initiatives taken by the government.
Meanwhile, Dr. Joshi reviewed the progress under various financial inclusion schemes including Pradhan Mantri Jan Dhan Yojana (PMJDY), Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY), Pradhan Mantri Suraksha Bima Yojana (PMSBY), Atal Pension Yojana (APY), Pradhan Mantri Mudra Yojana (PMMY), Stand Up India, PM Street Vendors AtmaNirbhar Nidhi (PM SVANidhi), PM Vishwakarma, PM Surya Ghar Yojana, Ethanol Blending in Petrol (EBP) and Compressed Bio Gas (CBG) financing etc.
