Finance Minister Nirmala Sitharaman on Saturday (Feb 1) announced that a new revamped central Know Your Customer (KYC) registry will be rolled out in 2025.

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While presenting the Union Budget, the FM said, “To simplify the Know Your Customer (KYC) process for citizens and financial services firms, the government will soon roll out a revamped central KYC (CKYC) Registry.”

The CKYC Registry, managed by CERSAI, aims to eliminate redundant KYC documentation and verification by streamlining processes across financial sectors, thereby enhancing efficiency.

Also read | India Union Budget 2025: Finance Minister announces new classification criteria for MSMEs

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Centre proposed measures for data protection regarding CKYC

The Centre has proposed other measures for data protection regarding Central Know Your Customer (CKYC), such as Aadhaar, PAN card, Voter ID and driving licenses.

Sitharaman presented her eighth consecutive Budget, highlighting the Centre's plans to introduce sweeping reforms across various sectors, including taxation. Sitharaman emphasised that Prime Minister Narendra Modi's achievements over the past decade have garnered significant international recognition.

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"This Budget aims to initiate transformative reforms across six domains during the first five years. These will augment our growth potential and global competitiveness. The domains are taxation, power sector, urban development, mining, financial sector and regulatory reforms... agriculture as the first engine," Ms Sitharaman said.

Also read | India Union Budget 2025-26 LIVE | No Income Tax on income up to ₹12 Lakh

New classification criteria for MSMEs

The finance minister also announced new classification criteria for Micro, Small, and Medium Enterprises (MSMEs).

She said that the Union Government will enhance credit guarantee cover for micro, small and medium enterprises to Rs 10 crore ($1,153,437) from the existing Rs 5 crore ($576,718).

Sitharaman said that customised credit cards with a limit of Rs 500,000 ($5767) will be started for small businesses registered on the Udyam Portal. These credit cards will be given to around one million businesses in the first year.

(With inputs from agencies)