RBI, banks in talks to strengthen KYC identification format

New Delhi: Banks are in dialogue with the Reserve Financial institution to additional strengthen the central know your buyer (CKYC) format with the intention to keep away from a number of accounts within the banking system with completely different KYC identification.

At current, any one of many six documents-passport, Aadhaar, voter’s identification card, NREGA card, PAN card or driving licence-is required in direction of proof of identification and proof of handle to open a checking account.

A senior financial institution government informed ET {that a} assembly on this regard was held final week with officers from the RBI.

“The problem is that it turns into troublesome to hint a number of accounts of a person if they don’t seem to be linked and are opened with completely different KYC paperwork,” mentioned the above quoted government.

“It’s being mentioned if we are able to collate info of current accounts and a standard format could be developed to deal with this going ahead,” the particular person mentioned.

One other government conscious of the developments mentioned that the plan is to additional strengthen the central KYC File Registry, which could be accessed by entities working underneath all 4 main regulators of the monetary sector-RBI, market regulator Securities and Alternate Board of India, insurance coverage regulator Irdai and pension watchdog PFRDA.

CKYC is a 14-digit quantity and as soon as a person will get this KYC identification quantity or KIN, it may be used throughout all monetary providers suppliers.