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.
While presenting the Union Budget, the FM said, &ldquo;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.&rdquo;
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 | <a href="https://www.wionews.com/india-news/india-union-budget-2025-finance-minister-announces-new-classification-criteria-for-msmes-8680260">India Union Budget 2025: Finance Minister announces new classification criteria for MSMEs</a>
<h2 dir="ltr">Centre proposed measures for data protection regarding CKYC</h2>
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.
"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 | <a href="https://www.wionews.com/india-news/india-budget-2025-26-live-updates-finance-minister-nirmala-sitharaman-to-unveil-this-years-budget-today-narendra-modi-pm-modi-budget-session-india-budget-president-droupadi-murmu-1st-feb-8679670">India Union Budget 2025-26 LIVE | No Income Tax on income up to ₹12 Lakh</a>
<h2 dir="ltr">New classification criteria for MSMEs</h2>
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)
&nbsp;

Discover the upcoming centralised KYC registry, set to revolutionise the customer verification process, as announced by Finance Minister Nirmala Sitharaman.

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. 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 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. "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)

Union Budget 2025: FM Sitharaman announces revamped central KYC registry

Founder of India’s major matrimonial site ‘Shaadi.com’, Anupam Mittal on Thursday (Feb 29) took to social media platform X to express his frustration over the cumbersome process of know-your-customer (KYC) paperwork. Mittal, who also appears on Shark Tank India, urged the government and the country’s Finance Minister Nirmala Sitharaman to simplify the process for angel investors and startups. In the&nbsp;long post, Mittal also tagged X accounts of Income Tax India, Sitharaman as well as the Prime Minister’s Office (PMO).

“While we talk about being a startup nation, we need policy making that keeps up,” Mittal wrote.

“Every year, team is spending inordinate amount of time sending KYC info to startups who in turn are coordinating with multiple angels to get KYC paperwork filed with Income Tax India, when they should be focusing on building great businesses. Why this harassment?” the ‘shark’ asked.

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<blockquote class="twitter-tweet">
While we talk about being a startup nation, we need policy making that keeps up. Every year, team is spending inordinate amt of time sending kyc info to startups who in turn are coordinating with multiple angels to get kyc paperwork filed with <a href="https://twitter.com/IncomeTaxIndia?ref_src=twsrc%5Etfw">@IncomeTaxIndia</a> when they should be…
— Anupam Mittal (@AnupamMittal) <a href="https://twitter.com/AnupamMittal/status/1763086413094895635?ref_src=twsrc%5Etfw">February 29, 2024</a></blockquote>
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“Income Tax India already has all our PAN numbers and many are registered investors. Madamji dekhiye pls (Madam, please look into it), it’s an unnecessary waste of time that sucks up countless unproductive hours of our country’s brightest,” Mittal concludes.

<h2>Response from Income Tax India</h2>

Responding to the post, Income Tax India asked Mittal to share his “specific issue/query” via email so that “our team can get in touch with you.”

Replying to this response, Mittal highlighted that it was not a specific issue but applies to anybody making investments in private companies.

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“Thx for your response but It’s not a specific issue .. it applies to anybody making investments in pvt cos. Every year the co has to collect KYC docs from all its investors (which is quite cumbersome) and submit to the IT dept. Don’t understand the point since PAN and several other details are already shared at time of investment.&nbsp;What is the value of this unnecessary paper-work?” Mittal wrote.

In the end, Mittal suggests, “Aapko jo chahiye, backend se kheench lo” (Whatever you want, just fetch it from the backend).

<h2>Response from X users</h2>

Mittal’s post on X generated massive interest among users, with many of them agreeing with his views regarding KYC reforms.

“It's quite ironic that the folks at the tax department ask us for copies of previous year tax returns. They have everything already, it’s puzzling why they ask for these details. Repeatedly. Sheer waste of time,” wrote one user.

Watch:&nbsp;Nirmala Sitharaman and Dr S Jaishankar to contest Lok Sabha elections

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“Thanks for speaking up and taking a stand. Rules and regulations are for the people and their nation's well being. Balance is required from both the ends. Startups and small businesses should be allowed to grow rather than having just two big business groups,” wrote a second.

Founder of India’s major matrimonial site ‘Shaadi.com’, Anupam Mittal on Thursday (Feb 29) took to social media platform X to express his frustration over the cumbersome process of know-your-customer (KYC) paperwork.

Founder of India’s major matrimonial site ‘Shaadi.com’, Anupam Mittal on Thursday (Feb 29) took to social media platform X to express his frustration over the cumbersome process of know-your-customer (KYC) paperwork. Mittal, who also appears on Shark Tank India, urged the government and the country’s Finance Minister Nirmala Sitharaman to simplify the process for angel investors and startups. In the long post, Mittal also tagged X accounts of Income Tax India, Sitharaman as well as the Prime Minister’s Office (PMO). “While we talk about being a startup nation, we need policy making that keeps up,” Mittal wrote. “Every year, team is spending inordinate amount of time sending KYC info to startups who in turn are coordinating with multiple angels to get KYC paperwork filed with Income Tax India, when they should be focusing on building great businesses. Why this harassment?” the ‘shark’ asked. While we talk about being a startup nation, we need policy making that keeps up. Every year, team is spending inordinate amt of time sending kyc info to startups who in turn are coordinating with multiple angels to get kyc paperwork filed with @IncomeTaxIndia when they should be… — Anupam Mittal (@AnupamMittal) February 29, 2024 × “Income Tax India already has all our PAN numbers and many are registered investors. Madamji dekhiye pls (Madam, please look into it), it’s an unnecessary waste of time that sucks up countless unproductive hours of our country’s brightest,” Mittal concludes. Response from Income Tax India Responding to the post, Income Tax India asked Mittal to share his “specific issue/query” via email so that “our team can get in touch with you.” Replying to this response, Mittal highlighted that it was not a specific issue but applies to anybody making investments in private companies. Also read: India: S Jaishankar, Nirmala Sitharaman may contest Lok Saba election from Karnataka, says minister “Thx for your response but It’s not a specific issue .. it applies to anybody making investments in pvt cos. Every year the co has to collect KYC docs from all its investors (which is quite cumbersome) and submit to the IT dept. Don’t understand the point since PAN and several other details are already shared at time of investment. What is the value of this unnecessary paper-work?” Mittal wrote. In the end, Mittal suggests, “Aapko jo chahiye, backend se kheench lo” (Whatever you want, just fetch it from the backend). Response from X users Mittal’s post on X generated massive interest among users, with many of them agreeing with his views regarding KYC reforms. “It's quite ironic that the folks at the tax department ask us for copies of previous year tax returns. They have everything already, it’s puzzling why they ask for these details. Repeatedly. Sheer waste of time,” wrote one user. Watch: Nirmala Sitharaman and Dr S Jaishankar to contest Lok Sabha elections × “Thanks for speaking up and taking a stand. Rules and regulations are for the people and their nation's well being. Balance is required from both the ends. Startups and small businesses should be allowed to grow rather than having just two big business groups,” wrote a second.

Why this harassment? ‘Shark’ Anupam Mittal demands KYC reforms, IT dept responds

The Reserve Bank of India (RBI) is taking decisive steps to tighten its grip on the booming fintech sector. With major players like Paytm and visa facing regulatory scrutiny, concerns over digital customer verification methods are in the spotlight.

KYC norms to be standarised across India’s financial sector

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank. &nbsp;

“This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949," the press release said.&nbsp;

The penalty, according to the RBI's statement, is a response to Paytm Payments Bank's non-compliance with several key regulatory directives, including the 'Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016,' 'RBI Guidelines for Licensing of Payments Banks,' 'Cyber security framework in banks,' and 'Securing mobile banking applications including UPI ecosystem'.&nbsp;

It is essential to note that this penalty focuses solely on deficiencies in regulatory compliance and does not intend to assess the validity of any transactions or agreements between the bank and its customers, as emphasised by the RBI.&nbsp;

According to a Moneycontrol report, the action against Paytm Payments Bank was initiated following a comprehensive review by the RBI, which revealed several instances of non-compliance.&nbsp;

The bank failed to correctly identify the beneficial owner for entities utilising its payout services, omitted the monitoring of payout transactions and risk profiling for these entities, and exceeded the regulatory ceiling for the end-of-the-day balance in certain customer advance accounts related to payout services. The central bank's statement highlighted these transgressions, stating, "It was also revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services."&nbsp;

Furthermore, the bank reported a cyber security incident with a delay, neglected to implement control measures related to 'SMS delivery receipt check,' and its Virtual Customer Identification Process (V-CIP) infrastructure did not prevent connections from IP addresses outside India. The RBI was unequivocal in its notice to Paytm Payments Bank, stating, "A notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions." &nbsp;

Following the bank's response to the notice and oral submissions made during a personal hearing, the RBI concluded that the charges of non-compliance were valid, thereby justifying the imposition of the monetary penalty.&nbsp;

In response to these developments, the central bank emphasised that this penalty is exclusively tied to regulatory violations, asserting that it should not be misinterpreted as a judgment on the validity of the bank's transactions or agreements with its customers.&nbsp;

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank.

The Reserve Bank of India (RBI) has imposed a monetary penalty of Rs 5.39 crore ($650,000) on Paytm Payments Bank for its failure to comply with Know Your Customer (KYC) norms and other specific regulatory provisions, as explicitly revealed in a press release issued by the central bank. “This penalty has been imposed in exercise of powers vested in RBI conferred under the provisions of Section 47A(1)(c) read with Section 46(4)(i) of the Banking Regulation Act, 1949," the press release said. The penalty, according to the RBI's statement, is a response to Paytm Payments Bank's non-compliance with several key regulatory directives, including the 'Reserve Bank of India (Know Your Customer (KYC)) Directions, 2016,' 'RBI Guidelines for Licensing of Payments Banks,' 'Cyber security framework in banks,' and 'Securing mobile banking applications including UPI ecosystem'. It is essential to note that this penalty focuses solely on deficiencies in regulatory compliance and does not intend to assess the validity of any transactions or agreements between the bank and its customers, as emphasised by the RBI. According to a Moneycontrol report, the action against Paytm Payments Bank was initiated following a comprehensive review by the RBI, which revealed several instances of non-compliance. The bank failed to correctly identify the beneficial owner for entities utilising its payout services, omitted the monitoring of payout transactions and risk profiling for these entities, and exceeded the regulatory ceiling for the end-of-the-day balance in certain customer advance accounts related to payout services. The central bank's statement highlighted these transgressions, stating, "It was also revealed that the bank did not monitor payout transactions and carry out risk profiling of entities availing payout services." Furthermore, the bank reported a cyber security incident with a delay, neglected to implement control measures related to 'SMS delivery receipt check,' and its Virtual Customer Identification Process (V-CIP) infrastructure did not prevent connections from IP addresses outside India. The RBI was unequivocal in its notice to Paytm Payments Bank, stating, "A notice was issued to the bank advising it to show cause as to why a penalty should not be imposed on it for failure to comply with the directions." Following the bank's response to the notice and oral submissions made during a personal hearing, the RBI concluded that the charges of non-compliance were valid, thereby justifying the imposition of the monetary penalty. In response to these developments, the central bank emphasised that this penalty is exclusively tied to regulatory violations, asserting that it should not be misinterpreted as a judgment on the validity of the bank's transactions or agreements with its customers.

RBI slaps Paytm Payments Bank with a massive penalty. Here's why 

In her Budget 2023 speech on Wednesday (February 1), Indian Finance Minister Nirmala Sitharaman introduced the government’s approach towards simplifying the know-your-customer (KYC) process.&nbsp;The finance minister proposed how the Permanent Account Number (PAN) card will be used by the government as a common identifier for all digital processes at government agencies.&nbsp;

The changes proposed are likely to streamline the procedure of KYC and would make the management of documentation of PAN cardholders easier for the Income Tax Department as well as other governmental organisations.

ALSO READ | <a href="https://www.wionews.com/business-economy/union-budget-2023-24-income-tax-rebate-extended-on-income-up-to-rs7-lakh-557818">Union Budget 2023-24: Sitharaman's 5 announcements on personal income tax</a>

Here’s what the finance minister said

In her speech, Sitharaman said, “The KYC process will be simplified by adopting a 'risk-based', instead of one-size fits all approach. The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India.” &nbsp;

“A one-stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies and regulators will also be set up using DigiLocker service and Aadhaar as the foundational identity,” the finance minister stated.

“For obviating the need for separate submission of same information to different government agencies, a system of ‘Unified Filing Process’ will be set up. Such filing of information or return in simplified forms on a common portal, will be shared with other agencies as per the filer’s choice,” she added. &nbsp;&nbsp;

WATCH | Exclusive | Union Budget 2023: Investment Banker PN Vijay speaks to WION

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&nbsp;

DigiLocker, Aadhaar to serve as “foundational identity"&nbsp;

For citizens, Aadhaar and DigiLocker will work as a “foundational identity”, a one-stop place to change address or identity, which will automatically be reflected across other platforms.&nbsp;For example, currently, if an address is updated in Aadhaar, it won’t get updated on the person’s Income Tax portal registration. &nbsp;

This change reflects how the government is working to synchronise the data of citizens across various portals when only one’s Aadhaar gets updated.

The DigiLocker service is being currently used to store and generate documents like PAN’s electronic version, Aadhaar, degrees, driving licences and academic certificates. In future, this platform will facilitate changing one’s details like an address which will eventually get updated at all necessary portals and in all documents.

(With inputs from agencies)

You can&nbsp;now write for wionews.com&nbsp;and be a part of the community. Share your stories and opinions with us&nbsp;<a href="https://www.wionews.com/content-contribution-registration-form">here</a>.

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In her Budget 2023 speech on Wednesday (February 1), Indian Finance Minister Nirmala Sitharaman introduced the government’s approach towards simplifying the know-your-customer (KYC) process.

In her Budget 2023 speech on Wednesday (February 1), Indian Finance Minister Nirmala Sitharaman introduced the government’s approach towards simplifying the know-your-customer (KYC) process. The finance minister proposed how the Permanent Account Number (PAN) card will be used by the government as a common identifier for all digital processes at government agencies. The changes proposed are likely to streamline the procedure of KYC and would make the management of documentation of PAN cardholders easier for the Income Tax Department as well as other governmental organisations. ALSO READ | Union Budget 2023-24: Sitharaman's 5 announcements on personal income tax Here’s what the finance minister said In her speech, Sitharaman said, “The KYC process will be simplified by adopting a 'risk-based', instead of one-size fits all approach. The financial sector regulators will also be encouraged to have a KYC system fully amenable to meet the needs of Digital India.” “A one-stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies and regulators will also be set up using DigiLocker service and Aadhaar as the foundational identity,” the finance minister stated. “For obviating the need for separate submission of same information to different government agencies, a system of ‘Unified Filing Process’ will be set up. Such filing of information or return in simplified forms on a common portal, will be shared with other agencies as per the filer’s choice,” she added. WATCH | Exclusive | Union Budget 2023: Investment Banker PN Vijay speaks to WION DigiLocker, Aadhaar to serve as “foundational identity" For citizens, Aadhaar and DigiLocker will work as a “foundational identity”, a one-stop place to change address or identity, which will automatically be reflected across other platforms. For example, currently, if an address is updated in Aadhaar, it won’t get updated on the person’s Income Tax portal registration. This change reflects how the government is working to synchronise the data of citizens across various portals when only one’s Aadhaar gets updated. The DigiLocker service is being currently used to store and generate documents like PAN’s electronic version, Aadhaar, degrees, driving licences and academic certificates. In future, this platform will facilitate changing one’s details like an address which will eventually get updated at all necessary portals and in all documents. (With inputs from agencies) You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here. WATCH WION LIVE HERE

Budget 2023: Govt simplifies KYC; DigiLocker, Aadhaar to serve as ‘foundational identity’

<a href="http://www.wionews.com/india-news/aadhaar-not-compulsory-with-bank-accounts-mobiles-cabinet-approves-amendments-184906">Aadhaar</a>, India's extraordinary attempt to give every citizen a biometric identity, is set for a massive revamp with new offline verification tools and non-intrusive ways for people seeking to voluntarily use the 12-digit unique number for new bank accounts and mobile connections.

After twists and turns in 2018, led by the landmark Supreme Court ruling on the constitutional validity of <a href="http://www.wionews.com/india-news/ravi-shankar-prasad-to-cscs-will-find-way-out-on-aadhaar-work-issue-179801">Aadhaar</a>, the UIDAI's efforts around offline modes like eAadhaar and QR code that can leverage the unique ID without any access to biometrics or even revealing the 12-digit number would gather pace in 2019.

From school admissions to getting marriage certificates and from paying taxes to taking new mobile connections, Aadhaar touched multiple facets of people's lives as it became the default identifier. This was true for around 1.22 billion Aadhaar holders till doubts emerged that collection of biometric details, even for general service, could infringe on a citizen's privacy rights.

Then, the Supreme Court upheld the constitutional validity of the world's largest biometric identification database but spelt out its new limitations.

After last year's assertion that Indians have a right to privacy, the apex court in September 2018 redefined the boundaries of the biometric authentication — Aadhaar can be used for payment of government benefits and taxation records but private companies were barred from accessing it.

In a 4-1 judgement delivered by the Constitution Bench, the Supreme Court held that Aadhaar would remain compulsory for the filing of Income Tax (IT) returns and allotment of Permanent Account Number (PAN)

However, Section 57 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 that permitted private entities like telecom companies or other corporates to use the biometric data was struck down, dealing a body blow to the government's ambitions to make the world's largest biometric project mandatory for a slew of services.

The landmark ruling sent banks, telecom operators and fintech companies — who relied heavily on Aadhaar eKYC — scrambling in search of other viable means of customer verification.

As the verdict meant that fulfilling regulatory Know Your Customer (KYC) requirements would have again involved a lot of paperwork for verification purposes, Aadhaar-issuing authority, Unique Identification Authority of India (UIDAI), quickly came up with alternate modes like QR (Quick Response) codes, e-Aadhaar and offline methods.

Just as 2018 started to wind down, came another twist in the plot. Earlier this month, the government decided to propose changes to existing laws - Telegraph Act and PMLA - in order to allow the use of Aadhaar as an ID verification tool for opening bank accounts and obtaining mobile connections, albeit on a voluntary basis. Additionally, fresh penal provisions have been proposed - through an amendment in Aadhaar Act - to deter companies from insisting on Aadhaar or misusing the biometric data.

The proposed amendments, which will be placed before the Parliament during the ongoing Winter session, propose to arm UIDAI with regulator-like powers to take enforcement actions on the misuse of the national biometric ID and impose stiff penalties on violations.

The compelling reason behind this seems to be the government's belief in the transformative potential of Aadhaar — the system is so cheap and efficient that it is estimated to have accounted for over 90 per cent of new subscriptions in the telecom sector, according to experts.

More stringent deterrents are likely to be put in place in the coming months. These might include a penalty for failure to obtain consent for authentication or offline verification — up to three-year imprisonment or fine of up to Rs 10,000 — a penalty for unauthorised use of core biometric information. The latter could attract imprisonment between 3-10 years and a fine of up to Rs 10,000.

Even as it dons regulatory role, the UIDAI would continue to accelerate efforts to transform and scale up Aadhaar enrolment and update services, currently available through 30,000 centres operating in designated bank branches, post offices and government premises across the country. 
'Aadhaar Seva Kendras', similar to the concept of Passport Seva Kendras, will come up in 53 cities across India at an estimated project cost of Rs 300-400 crore. These swanky new centres will be operational by August next year, dishing out appointment-based enrolment, update and other miscellaneous services around Aadhaar, under the watchful eyes of authority's own employees.

Earlier this year, former UIDAI CEO Ajay Bhushan Pandey, recalling his early years as a small-town boy who didn't hold a photo identity for a long time, had reportedly said that Aadhaar offered an answer to an ancient question that was asked by sages — who am I?

The year that was, ensured that the answer continues to be the 12-digit identifier, at least for those who choose to use it.&nbsp;

Aadhaar, India's extraordinary attempt to give every citizen a biometric identity, is set for a massive revamp with new offline verification tools and non-intrusive ways for people seeking to voluntarily use the 12-digit unique number for new bank accounts and mobile connections.

Aadhaar, India's extraordinary attempt to give every citizen a biometric identity, is set for a massive revamp with new offline verification tools and non-intrusive ways for people seeking to voluntarily use the 12-digit unique number for new bank accounts and mobile connections. After twists and turns in 2018, led by the landmark Supreme Court ruling on the constitutional validity of Aadhaar, the UIDAI's efforts around offline modes like eAadhaar and QR code that can leverage the unique ID without any access to biometrics or even revealing the 12-digit number would gather pace in 2019. From school admissions to getting marriage certificates and from paying taxes to taking new mobile connections, Aadhaar touched multiple facets of people's lives as it became the default identifier. This was true for around 1.22 billion Aadhaar holders till doubts emerged that collection of biometric details, even for general service, could infringe on a citizen's privacy rights. Then, the Supreme Court upheld the constitutional validity of the world's largest biometric identification database but spelt out its new limitations. After last year's assertion that Indians have a right to privacy, the apex court in September 2018 redefined the boundaries of the biometric authentication — Aadhaar can be used for payment of government benefits and taxation records but private companies were barred from accessing it. In a 4-1 judgement delivered by the Constitution Bench, the Supreme Court held that Aadhaar would remain compulsory for the filing of Income Tax (IT) returns and allotment of Permanent Account Number (PAN) However, Section 57 of the Aadhaar (Targeted Delivery of Financial and other Subsidies, Benefits and Services) Act, 2016 that permitted private entities like telecom companies or other corporates to use the biometric data was struck down, dealing a body blow to the government's ambitions to make the world's largest biometric project mandatory for a slew of services. The landmark ruling sent banks, telecom operators and fintech companies — who relied heavily on Aadhaar eKYC — scrambling in search of other viable means of customer verification. As the verdict meant that fulfilling regulatory Know Your Customer (KYC) requirements would have again involved a lot of paperwork for verification purposes, Aadhaar-issuing authority, Unique Identification Authority of India (UIDAI), quickly came up with alternate modes like QR (Quick Response) codes, e-Aadhaar and offline methods. Just as 2018 started to wind down, came another twist in the plot. Earlier this month, the government decided to propose changes to existing laws - Telegraph Act and PMLA - in order to allow the use of Aadhaar as an ID verification tool for opening bank accounts and obtaining mobile connections, albeit on a voluntary basis. Additionally, fresh penal provisions have been proposed - through an amendment in Aadhaar Act - to deter companies from insisting on Aadhaar or misusing the biometric data. The proposed amendments, which will be placed before the Parliament during the ongoing Winter session, propose to arm UIDAI with regulator-like powers to take enforcement actions on the misuse of the national biometric ID and impose stiff penalties on violations. The compelling reason behind this seems to be the government's belief in the transformative potential of Aadhaar — the system is so cheap and efficient that it is estimated to have accounted for over 90 per cent of new subscriptions in the telecom sector, according to experts. More stringent deterrents are likely to be put in place in the coming months. These might include a penalty for failure to obtain consent for authentication or offline verification — up to three-year imprisonment or fine of up to Rs 10,000 — a penalty for unauthorised use of core biometric information. The latter could attract imprisonment between 3-10 years and a fine of up to Rs 10,000. Even as it dons regulatory role, the UIDAI would continue to accelerate efforts to transform and scale up Aadhaar enrolment and update services, currently available through 30,000 centres operating in designated bank branches, post offices and government premises across the country. 'Aadhaar Seva Kendras', similar to the concept of Passport Seva Kendras, will come up in 53 cities across India at an estimated project cost of Rs 300-400 crore. These swanky new centres will be operational by August next year, dishing out appointment-based enrolment, update and other miscellaneous services around Aadhaar, under the watchful eyes of authority's own employees. Earlier this year, former UIDAI CEO Ajay Bhushan Pandey, recalling his early years as a small-town boy who didn't hold a photo identity for a long time, had reportedly said that Aadhaar offered an answer to an ancient question that was asked by sages — who am I? The year that was, ensured that the answer continues to be the 12-digit identifier, at least for those who choose to use it.

Aadhaar: Twists and turns in the biometric tale

The Reserve Bank of India&nbsp;has modified&nbsp;old currency deposit rules once again,&nbsp;Know-Your-Customer (KYC) compliant account holders can now deposit over Rs 5,000 without any questions asked.

RBI had said on Monday old notes exceeding Rs 5,000 can be deposited only once per account till December 30. It said that the depositor will also have to give an explanation as to why the old notes were not deposited earlier, according to PTI.&nbsp;

RBI added that the explanation should be kept on record to facilitate an audit trail at a later stage.&nbsp;

Further, RBI said that even if deposits are below Rs 5,000, if the cumulative deposit exceeds Rs 5,000, &quot;they may be subject to the procedure to be followed in case of tenders above Rs 5,000&quot;.&nbsp;

RBI also said that deposits above Rs 5,000 can be credited only into KYC-compliant accounts and &quot;if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts&quot;, PTI reports.

However, RBI has said that the restrictions shall not apply to deposits under the Pradhan Mantri Garib Kalyan scheme, 2016.

&quot;It has been decided to place certain restrictions on deposits of specified bank notes into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016,&quot; RBI said in a notification.

Under the scheme, black money holders can deposit unaccounted cash in an account which will be subject to 50 per cent tax, which breaks down into 30 per cent&nbsp;tax, 33 per cent&nbsp;surcharge and 10 per cent&nbsp;penalty, and 4-year interest-free lock-in for the remaining 25 per cent of the amount.

(WION with inputs from PTI)

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Know-Your-Customer (KYC) compliant account holders can now deposit over Rs 5000 without any questions asked

The Reserve Bank of India has modified old currency deposit rules once again, Know-Your-Customer (KYC) compliant account holders can now deposit over Rs 5,000 without any questions asked. RBI had said on Monday old notes exceeding Rs 5,000 can be deposited only once per account till December 30. It said that the depositor will also have to give an explanation as to why the old notes were not deposited earlier, according to PTI. RBI added that the explanation should be kept on record to facilitate an audit trail at a later stage. Further, RBI said that even if deposits are below Rs 5,000, if the cumulative deposit exceeds Rs 5,000, "they may be subject to the procedure to be followed in case of tenders above Rs 5,000". RBI also said that deposits above Rs 5,000 can be credited only into KYC-compliant accounts and "if the accounts are not KYC compliant credits may be restricted up to Rs 50,000 subject to the conditions governing the conduct of such accounts", PTI reports. However, RBI has said that the restrictions shall not apply to deposits under the Pradhan Mantri Garib Kalyan scheme, 2016. "It has been decided to place certain restrictions on deposits of specified bank notes into bank accounts while encouraging the deposits of the same under the Taxation and Investment Regime for the Pradhan Mantri Garib Kalyan Yojana, 2016," RBI said in a notification. Under the scheme, black money holders can deposit unaccounted cash in an account which will be subject to 50 per cent tax, which breaks down into 30 per cent tax, 33 per cent surcharge and 10 per cent penalty, and 4-year interest-free lock-in for the remaining 25 per cent of the amount. (WION with inputs from PTI)

Demonetisation: Reserve Bank of India changes old currency deposit rules for 60th time

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