Budget 2025: Revamped Central KYC Registry To Be Rolled Out In 2025

Budget 2025: Revamped Central KYC Registry To Be Rolled Out In 2025

SUMMARY

To implement the earlier announcement on simplifying the KYC processes, the revamped Central KYC registry will be rolled out in 2025, said FM Sitharaman

The Central KYC Registry is a centralised database of all KYC records of customers in the financial sector

Besides revamping the CKYC registry, the Centre also increased the foreign direct investment (FDI) limit for the insurance sector to 100% from 74% earlier

A revamped Central Know Your Customer (KYC) registry will be rolled out in 2025 in order to simplify the KYC process, said finance minister Nirmala Sitharaman during her Union Budget 2025 speech on Saturday (February 1).

The Central KYC Registry is a centralised database of all KYC records of customers in the financial sector. The objective of this repository is to reduce the burden of producing KYC documents and getting those verified each time the customer creates a new relationship with a financial entity.

“To implement the earlier announcement on simplifying the KYC processes, the revamped Central KYC Registry will be rolled out in 2025,” said Sitharaman.

The Centre also plans to implement a streamlined system for periodic updating.

Ravi Kumar Jha, MD and CEO at LIC Mutual Fund, said in a statement that these measures will ease the entry of new investors under financial inclusion.

The finance minister said that this year’s Budget aims to initiate transformative reforms across six domains for the next five years — financial sector,  power sector, mining, urban development, taxation, and regulatory reforms.

Besides revamping the CKYC registry, the Centre also increased the foreign direct investment (FDI) limit for the insurance sector to 100% from 74% earlier.

“This enhanced limit will be available for those companies which invest the entire premium in India. The current guardrails and conditionalities associated with foreign investment will be reviewed and simplified,” Sitharaman said.

For startups, the FM also announced a corpus of INR 10,000 Cr for a new fund of funds (FoF) for startups.

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