KYC: Highlights & Challenges

From being a third wold country, India has put forward a step toward the digitalization. In this era of smart phones, high speed internet and newest technologies this step is considered to be a flicker in the long term development. With the initiation of the Aadhar Policy, pioneering digitilization came across the whole country. Under the UIDAI statutory authority, based on the biometric and demographic data Indian citizens and passport holders are provided with a 12 digit unique identification number, basically this is Aadhar. After the Commencement of Aadhar, linking the 12 digit identification number with other services like PAN Card, Cellphone number, e-wallets, banks etc was requisited by the Government. In this ongoing process of digitalization a standard set forward in the merchandising industry, which is known as KYC or Know your Customer. The foremost initiative is to maintain a client-investor relationship with the fact that they can manage the account effectively and au courant of any peculiar handling instructions of that account. KYC consistently comprises requirement and stances such as risk management, client agreeable strategies and transactions monitoring. Now, generally there are occurances of debriefs in human minds. Is KYC actually safe? KYC includes linking of identification numbers, like Aadhar, PAN, Driving Lisence, is it adequete to submit such details? With the recent scandals of identificatgion thefts, the increasing trafficking of Dark webs and unethical hacking, the biggest concern that needs to be faced is the indemnity of identification, whether the eminence of Digitalization is a benison towards the society or a menace which can yield enduring repurcations in the thriving phenomenon.