The finance ministry is looking to cut down on paperwork for financial transactions and establishing a central repository which will store a person’s KYC (know your customer) credentials, reports the Economic Times. The report added that the ministry has notified the rules for setting up the entity and will be launching it soon.

Currently, customers have to go through the KYC process separately for every financial product even within the same bank. For example, the KYC for a savings bank account does not work for a mutual funds product. The report quotes a ministry official who said banks, insurance companies, stock market intermediaries would all be covered by the repository.

A person’s permanent account number, Aadhaar, passport, driving licence or national population registry number will count as proof of identity. A bank will pass these details on to the registry, which will in turn verify the documents and issue a identifier which can be quoted whenever any new account is opened.

Digital locker

In February, the department of electronics & information technology (DeitY) has launched an Aadhaar-based e-locker service for storing documents, in beta. Users can store electronic versions of important documents like birth certificates, voters ID cards, university documents, etc in the e-locker. They can also electronically sign these documents with the e-sign facility and then share them with government organisations or other entities when required. The sharing of e-documents will be done through a registered repository, which will ensure that the documents are authentic. This is likely to reduce usage of fake documents to a certain extent and also minimize time spent on authenticating documents.

In November last year, the Maharashtra government too piloted an Aadhaar-linked  e-locker service which could store important documents such as birth certificates, passports, and educational qualifications. The service also allows citizens to access these documents, which are frequently required for government services and applying jobs. According to the website, the service will help to pre-populate most of the fields from an XML file which is kept in the e-locker.

Much earlier in 2012, ICICI Bank launched a  a virtual online locker available on its net banking platform. The E-Locker can be used to safely store electronically scanned copies of important documents like legal agreements, policy documents, degree certificates and bank statements in various formats. The facility serves as a backup and retrieval tool for important documents and offers a storage space of 1 GB per customer.

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