{"id":284879,"date":"2024-02-28T18:20:27","date_gmt":"2024-02-28T12:50:27","guid":{"rendered":"https:\/\/forumias.com\/blog\/?p=284879"},"modified":"2024-02-28T18:20:27","modified_gmt":"2024-02-28T12:50:27","slug":"t-v-somanathan-committee-to-finalise-kyc-rules","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/t-v-somanathan-committee-to-finalise-kyc-rules\/","title":{"rendered":"T V Somanathan committee to finalise KYC Rules"},"content":{"rendered":"

Source<\/strong>-This post on T V Somanathan committee to finalize KYC Rules<\/strong> is based on the article “Govt forms panel headed by T V Somanathan to finalise uniform KYC norms<\/strong><\/a>” published in “Business Standard<\/strong>” on 26th February 2024.<\/p>\n

Why in the News?<\/strong><\/h2>\n

The government has recently established an expert committee under Finance Secretary T V Somanathan<\/span> to make recommendations for implementing uniform Know Your Customer (KYC) norms across various sectors.<\/p>\n

What are the objectives of the committee?<\/strong><\/h2>\n
\"T
Source-<\/strong> Business Standard<\/figcaption><\/figure>\n

Background<\/strong>– After the Financial Stability and Development Council (FSDC)<\/a> talked about a plan for standard KYC norms, the government set up this committee to address issue of uniform KYC norms across various sectors.<\/p>\n

1. Objective- <\/strong>The committee will suggest how to apply uniform Know Your Customer (KYC) norms across different sectors.<\/p>\n

2.<\/strong> Input from FSDC members<\/strong>– The committee plans to seek input from all members of the Financial Stability and Development Council (FSDC) regarding KYC norms. For example<\/strong>, the Ministry of Corporate Affairs<\/span> would share its practices regarding the use of the permanent account number (PAN)<\/span> as a common identifier for company incorporation.<\/p>\n

What is Know Your Customer (KYC)?<\/strong><\/h2>\n

1. <\/strong>It is a comprehensive process used by businesses and financial institutions to verify the authenticity and identity of their customers.<\/p>\n

2. <\/strong>KYC is mandatory for all customers<\/span> before investing or opening a bank account.<\/p>\n

3.<\/strong> Currently in India, different KYCs are required for various financial products<\/span> like opening a bank account, investing in mutual funds, purchasing life insurance, or investing in retirement savings funds.<\/p>\n

4.<\/strong> Having to do multiple KYCs and updates can deter new investors. To streamline KYC for investing in various financial assets, the central government introduced the Central KYC Records Registry.<\/span><\/p>\n

What is Central KYC Records Registry?<\/strong><\/h2>\n

1. About<\/strong>– The Central KYC Registry stores KYC records of customers in the financial sector using uniform norms.<\/span><\/p>\n

2. Aim- <\/strong>It aims to reduce the inconvenience of submitting and verifying KYC documents every time a customer initiates a new relationship with a financial entity.<\/p>\n

3. Launched<\/strong>– It was launched by central government in 2016.<\/p>\n

4. Limitation<\/strong>– It has been restricted only to the capital markets<\/span>.<\/p>\n

UPSC Syllabus- Indian Economy<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Source-This post on T V Somanathan committee to finalize KYC Rules is based on the article “Govt forms panel headed by T V Somanathan to finalise uniform KYC norms” published in “Business Standard” on 26th February 2024. Why in the News? The government has recently established an expert committee under Finance Secretary T V Somanathan… Continue reading T V Somanathan committee to finalise KYC Rules<\/span><\/a><\/p>\n","protected":false},"author":10367,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127],"tags":[11872,10503],"class_list":["post-284879","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","tag-9pm-daily-factly","tag-business-standard","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/284879","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10367"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=284879"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/284879\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=284879"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=284879"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=284879"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}