KYC or Know Your Customer is a process through which a bank or institution verifies the identity and address of a person. The government has made KYC mandatory for most online services – whether you want to open a bank account, mobile connection, stock market, mutual fund or depositories. Everywhere, you have to go through the process of KYC. If you do not complete this process, your work will get stuck. Now the question arises if KYC is so important, why is the government not considering bringing a single-window portal or system for this?
Union Commerce Minister Piyush Goyal has also talked about considering bringing the KYC system on the single window portal. “A common platform should be prepared 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,” he said.
In an event of the National Stock Exchange (NSE), the minister also emphasized on creating a Single Window Portal for KYC to establish a strong common KYC system for stockbrokers, mutual funds and depositories.
Notably, fraud cases in the name of KYC are rising rapidly. Even former Indian cricketer Vinod Kambli has also 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 give your personal information, your bank account is emptied. 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 also help all financial institutions related to equity, trading and banking to attract more and more new people. Piyush Goyal also believes that by having a single-window KYC, financial companies will get more customers. 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.