Budget: Govt proposes to simplify KYC procedure with ‘risk-based’ approach

The government on Wednesday proposed to simplify the KYC procedure by adopting a ‘risk-based’ rather than the ‘one size fits all’ approach currently in practice.

In her Budget Speech, finance minister Nirmala Sitharaman also proposed to introduce a ‘one stop solution’ for identity and address updating through the DigiLocker service.

Another significant announcement made by the minister relates to use of PAN as common identifier for business establishments for digital systems of government agencies.

“The KYC process will be simplified adopting a ‘risk-based’ instead of ‘one size fits all’ approach,” Sitharaman said as she presented the last full budget before the 2024 general elections.