Budget 2023: KYC simplified, now PAN to be used as a common identifier

Union Minister of Finance Nirmala Sitharaman while presenting Budget 2023 has proposed usage of Permanent Account Number (PAN) card as a common identifier for all digital systems at government agencies. The change is anticipated to streamline the KYC procedure and make it easier for the Income Tax Department and other governmental organisations to manage the PAN cardholders’ documentation. V Swaminathan, executive chairman, Andromeda Sales and Apnapaisa says, “Streamlining the KYC process, making PAN a common business identifier and improving the usage of Digi locker are all welcome moves by the government. This should ease investment, taxation and enhance the financial inclusion of customers and lenders, thereby bringing more transparency in compliance and supporting the growth of the industry.”

“A simplified KYC process, adopting a ‘risk-based’ approach as opposed to a ‘one size fits all’ outlook will ensure accurate and sophisticated verification as well as in-turn regulated operations in the financial services space. Highlighting the growth of digital payments and fiscal support for digital public infrastructure is also appreciable” as this further contributes to India’s digitisation efforts,” says Akash Sinha, Co-founder & CEO, Cashfree Payments.

“Simplification of KYC processes to be amenable as per evolving needs and adopting a risk based approach will ensure that resources are allocated in the most efficient ways based on priorities over processes,” says Madhusudan Ekambaram, Co-Founder & CEO, KreditBee.

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Manoj Purohit, Partner & Leader – Financial Services Tax, BDO India, says, “PAN will be a common business identifier. This will reduce multiple requirements of KYC and will give a breather to entities by reducing the compliance burden. This is a step towards furtherance of ease of operations in India.”

Abhishek Dev, CEO and Co-Founder, Epsilon Money Mart says, ““Simplifying of KYC, using PAN as common business identifier and enhanced use of Digi locker are all welcome steps towards important objectives of simplification of investment, taxation and better enhanced financial inclusion of individuals and businesses. This should further increase the pace of growth of the formal economy and bring more transparency”

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