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Finance Minister Nirmala Sitharaman has asked the Securities and Exchange Board of India to make KYC simple and common across all financial services. She shared this idea during SEBI’s 38th Foundation Day event.
Currently, people are required to fill out KYC forms repeatedly. Banks, mutual funds, and insurance companies demand the same information. This takes time and feels tiring. Sitharaman said this system needs to change.
She wants one KYC that works everywhere. A single KYC should allow access to bank accounts, demat accounts, mutual funds, and insurance. This will make life easier for customers. It will also save time and effort.
Sitharaman said SEBI can lead this change. The regulator handles a large number of investors. It also uses strong digital systems. These points make SEBI the right choice to guide this work. She also asked other regulators to act fast and support this plan.
India already has tools like Aadhaar and DigiLocker. These systems help in online identity checks. A seamless KYC system can use these tools to make the process quick and safe. It can also reduce the chances of fraud.
She also spoke about SEBI’s journey over the years. The regulator has handled many challenges well. It has also shown strong results in legal matters. This shows its strength and builds trust among investors.
The stock market has also seen strong growth. In FY25-26, around 366 companies launched IPOs. They raised nearly Rs. 1.9 lakh crore. More people have started investing in recent years. A simple KYC system can help even more people join the market.
Sitharaman also talked about global changes. She said SEBI should stay in touch with regulators in other countries. Issues like online fraud and new technology risks need joint efforts. Better global ties can help India grow stronger in financial markets.
At the same time, some concerns remain. Data safety is very important. A unified KYC system must protect personal details. Different regulators also need to work together smoothly.
The idea is clear. One KYC for all services. This step can make financial services faster and easier for everyone. Seamless KYC can bring a big change in how people use money services in India.
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