A common risk-based KYC (know-your-customer) framework is in the works for all financial sector regulators, Reserve Bank India (RBI) governor Raghuram Rajan said on Friday.
“We have to integrate (KYC) across all financial sector regulators. The FSDC (the Financial Stability and Development Council) has a proposal which we are working on… I think we should see that very soon,” Rajan said, addressing the Delhi Economic Conclave organised by the ministry of finance. The government is expected to notify rules soon to set up a central KYC registry that will link different identity proofs of an individual and link his financial transactions at one place.
Backing simple KYC norms such as by the use of Aadhaar, Rajan said, JAM (Jan Dhan, Aadhaar and mobile) has created positive effects in the financial inclusion of the unserved population in the country. JAM created the space for rolling out of the direct benefit transfer (DBT) scheme for the government’s welfare and development programmes, he said.
Banks have opened 19 crore bank accounts within a year under the Pradhan Mantri Jan Dhan Yojana, the backbone for the implementation of DBT, which is yielding considerable financial savings in some schemes.