Nilekani report proposes to simplify KYC norms

The high-level Nandan Nilekani-led committee on deepening of digital payments appointed by the Reserve Bank of India (RBI released its report to the public on 3 June. The committee has recommended that financial sector entities come together with a data sharing proposal to share minimum know-your-customer (KYC) data, with adequate oversight and safeguards as approved by the Financial Stability and Development Council. In other words, a bank should be able to share KYC data with a mutual fund when the customer invests in the fund from his or her bank account. The committee also recommended innovation in the process. In the short term, the committee suggested a ‘simplified procedure’ of KYC for cases in which the first transaction is from a verified KYC account.