Working to implement common KYC for financial transactions: FM Sitharaman

Says developed nations haven't done their bit on climate change

Union Finance Minister Nirmala Sitharaman on Tuesday said work was on for implementing common know your customer (KYC) that can be used for undertaking various financial transactions across institutions. 

“There is a central repository which takes care of central KYC. We are also now working in such a way that once you have given your KYC, it can be applicable at various institutions at various times for various requirements that you may have. And you may not have to do it each time even if the businesses are slightly different that you're engaged in," she said at an event organised by industry body Federation of Indian Chambers of Commerce and Industry (FICCI).

The issue of a common KYC process for banking, insurance, and capital markets was discussed at a meeting of financial sector regulators and the finance minister last week. 

Sitharaman said the value of UPI transactions had crossed Rs 10.62 trillion in July through 6.28 billion transactions. In the last fiscal year ended March 2022, UPI processed more than 46 billion transactions amounting to over Rs 84.17 trillion.

“UPI’s own target is a billion transactions a day in the next five years. So it's readying itself for that kind of an escalation in transaction," she said. Sitharaman further said the future of financing in India will be driven more and more by digitisation of banking and other related services.

Sitharaman also said the world’s developed nations had not fulfilled their $100-billion commitment to developing nations to fight climate change and stressed that what is needed is more global cooperation and less talk.

 “$100 billion is still on. Five years or six years have gone by. We've not seen anything like that, not just us, no other country has seen it. Island nations are drowning. Coastal areas are getting eroded. Unusual events of rain, which should happen over three or four months, pours on a single day. These are not things which are isolated in some parts of the world. It's across the board," Sitharaman said.

The minister’s comments gain significance as India is set to take over the chair of G20 for a year from December 1. Climate change and climate finance are expected to be two of the most important agenda items that India is expected to set for the powerful grouping of nations to discuss and work upon.

At the Global Fintech Fest 2022 earlier in the day, Sitharaman said India’s success in popularising digital payments through Unified Payments Interface (UPI) and RuPay cards had led to other countries evincing interest in the payment stack that had been created indigenously. Countries such as Singapore, Bhutan, even France’s Lyra network, and many others are seeing the use for such platforms, Sitharaman said.

“Indistack, particularly the payment stack, has been very well recognised and people are looking to share their thoughts with India. Many of our bilateral engagements with our counterparts today focus on this subject,” she said. 

India is also actively reaching out to a number of countries to leverage the stack it has built so that it can be used for the public good of the world.