Top officials from the finance ministry, regulatory bodies and heads of private and public sector banks are likely to hold a crucial meeting on central KYC (Know Your Customer) on ease of doing business on January 24, a few days before the presentation of the Union Budget, sources said.
Apart from officials of regulatory bodies like the Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), those from Enforcement Directorate (ED) will also attend the meeting.
“A high-level crucial meet has been called on January 24 for the effective utilisation of central know your customer registry (CKYCR) for ease-of-doing business as well as to ensure full compliance of customer due diligence. The meeting will be held under the chairmanship of Finance Secretary TV Somanathan,” a source told Moneycontrol on January 19.
The meeting will be attended by other Finance Ministry secretaries, including Revenue Secretary Sanjay Malhotra, Economic Affairs Secretary Ajay Seth, and Financial Services Secretary Vivek Joshi.
Director of ED, Rahul Navin; RBI deputy governor, Rajeshwar Rao; IRDAI Chairman, Debasish Panda; and senior officials of Sebi and PFRDA are likely to attend the meeting.
CKYC enables investors to complete KYC only once before they interact with different financial services sector entities.
CKYC is the latest addition to the various KYC procedures already available. Once CKYC is implemented, all other KYC procedures may become redundant. The financial institutions may need to implement this new regime.
Issues related to CKYC
Since CKYC is not integrated with other KYC repositories, customers may have to provide KYC documents again and again. The meeting is likely to discuss these issues, he said.
The Central Registry of Securitisation Asset Reconstruction and Security Interest of India (CERSAI) acts as the Central KYC Records Registry.
CERSAI MD & CEO Umesh Kumar Singh, HDFC Bank MD & CEO Sashidhar Jagdishan, ICICI Bank MD & CEO Sandeep Bakhshi, State Bank of India Chairman Dinesh Kumar Khara and Punjab National Bank MD & CEO Atul Kumar Goel are also likely to attend the high-level meet.
The government believes that once fully implemented, CKYC will benefit investors with cost optimisation, inter-usability of KYC records in the financial sector and convenience of uploading documents in one place.
In April last year, the RBI, in a circular, had designated the customers onboarded through CKYC as high-risk, which led to banks going slow on incorporating it into their system.
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