Current Affairs - Miscellaneous - Discussion

Finance Minister Nirmala Sitharaman notified that the Non-banking financial companies (NBFCs) will be permitted to use the Aadhaar based bank mandated KYC (Know Your Customer) to avoid repeating the process for the customers. The move will simplify and quicken up the process of availing credit.Background: The government had amended the Prevention of Money Laundering (PMLA) Act 2002 to allow digital KYC. The amendment clarifies the various modes by which banks and NBFCs can capture the customers' data electronically and also allowed the financial entities to capture full details through eKYC, removing the need to provide the physical documents. It allowed the use of electronic documents besides physical documents to do the KYC Process.