India Is Moving Toward a Universal KYC System—Here’s What That Means

India’s financial regulators are working on a universal Know Your Customer (KYC) system to make verification easier across banks, insurers, mutual funds, and NBFCs. The idea is simple—once your KYC details are registered, they can be used across different financial services without needing to be updated multiple times.

 

The plan was discussed at a Financial Stability and Development Council (FSDC) meeting, where Finance Minister Nirmala Sitharaman urged regulators to improve the customer experience. The goal is to integrate KYC records into the Central Know Your Customer Registry (CKYCR), which already holds details for over 103 crore individuals.

 

The government is also looking at ways to speed up refunds for unclaimed financial assets through district-level camps, making it easier for people to get back lost funds. For Non-Resident Indians (NRIs) and Overseas Citizens of India (OCIs), universal KYC could solve issues related to Aadhaar-PAN linking and mobile number validation, which have been a hassle.

 

Regulators have been asked to enforce CKYC usage at all financial touchpoints, reducing duplication and making compliance smoother. The meeting also covered cybersecurity measures to protect financial data and strengthen coordination between financial authorities.

 

This shift toward universal KYC could make financial transactions much easier for millions of Indians.

 

Sources: Economic Times, MSN News, CNBC TV18