Why Common KYC is important and beneficial? Know why everyone asks for Common KYC first
Common KYC: Many people have been demanding common KYC for financial institutions like stockbrokers, mutual funds and banks, etc. for a long time. Now the government has also become serious in this direction. The government believes that having Common KYC (Know Your Customer) will benefit financial institutions and the general public.
Commerce Minister Piyush Goyal, in a program of the National Stock Exchange on Wednesday, also emphasized creating a Single Window Portal for KYC to establish a strong common KYC system for stockbrokers, mutual funds, and depositories, etc. Gave. What are the benefits of Common KYC, let us know.
Benefits to both companies and customers
Common KYC will benefit all financial institutions related to equity trading and banking as well as the customers joining them. Having a common portal for common KYC, the customer will not have to submit documents repeatedly to different institutions after registering the KYC on this portal. This will save them time.
On the other hand, financial institutions will also benefit. They will immediately take all the information about the customers going to join them from the common KYC portal. This will save their time and labor and speed up the delivery of services.
Clients will be able to join soon
Common KYC will benefit the common people in that they will be able to connect with equity trading and banking institutions quickly. Now to join different organizations, KYC has to be done every time. Some organizations spend a lot of time on this. This makes the new customer have to wait. Due to delay, many times many people change their decision to join an institution.
More people will join equity trading and banking
Having Common KYC will also facilitate all financial institutions related to equity, trading, and banking to connect more and more new people with them. Commerce Minister Piyush Goyal also believes that having a single-window KYC system will give more customers to financial institutions. This will make it easier to open a bank account, start trading in the stock market and get a credit card. More investors and common people will join the stock exchange and banking sector.