Banks will make KYC process stricter, verification will start afresh, decision after Paytm incident
According to sources, KYC will be updated in one or more accounts or joint accounts linked to a phone number. Customers having more than one account, who have opened the account with different documents, will also be verified.
After the irregularities regarding KYC in Paytm Payments Bank, banks have now adopted a strict stance. It is reported that preparations are underway to strengthen the KYC process. Under this, bank accounts and account holders will be identified. Additional documents may be asked from them. At present, to open a bank account, other documents including Passport, Aadhaar, Voter ID, PAN Card and Driving License are taken as proof of address.
The government has formed a committee under the chairmanship of Finance Secretary TV Somanathan. This committee will ensure KYC rules in the entire financial sector. Uniform KYC was discussed in the recent meeting of the Financial Stability and Development Council chaired by Finance Minister Nirmala Sitharaman.
According to sources, KYC will be updated in one or more accounts or joint accounts linked to a phone number. Customers having more than one account, who have opened the account with different documents, will also be verified. According to a leading bank official, there will be fresh verification of PAN, Aadhaar and mobile number for joint accounts. Banks may ask for more documents for KYC from such account holders.