Thursday, 4 June 2015

Know Your Customer - KYC

The concept of Know Your Customer of KYC was introduced in the Banking Industry through out the world to keep check on terrorist activities being funded by the terrorists groups and organizations through Banking Channel as it is a hard fact that if the supply line of any militant group or organization is cut off then the group or organization is starved to death. When supply of money, arms and basic amenities including food, water  and shelter is cut then no organization can survive on the existing resources for long. Though KYC as popular among Bankers and public is in relation to opening of account of prospective customers by the Banks. But frankly speaking the KYC concept holds goods for all type of customers including customers of airlines, railways, malls, cinema house, shopkeeper and even doctors. We have already covered the customers of the doctors under Know Your Patient - KYP guidelines. Now even railways, airlines have started taking the ID proof of their passengers. Gas Agencies like Indian Oil Corporation, HPCL and Bharat Gas have also started the process of linking their customers or consumers with their Aadhaar Cards. Income Tax authorities have also started knowing about their customers that is assesses through  PAN number, which may be linked to the Aadhaar Card in near future. Cross linking of Aadhaar Card, Passports, Voter Cards, Gas Connections, Electric, Water and Sewerage Connections, House Tax, Income Tax, Service Tax and other Taxes account will pave a way for digitization of all record. Linking of Social Net Working profiles on Facebook, Twitter, Google+ and Linkedin along with CIBIL Reports, Demat accounts of Stocks and Share, Insurance Repositories, Salaries and Pensions can easily create Real Data Base of the Indian Human Population and in future we can switch over to dematerialized form of educational degrees, wills and probate and above all title to property to be linked Unique Aadhaar Number which is a 12 digit Individual Identification Number issued by UIDAI on bhealf of Government of India so as to have digitization of all the immovable properties. Aadhar ID is acceptable all over India as a single and unique proof of residence and address and can be verified online from the GOI site for UIDAI. Let all the politicians which are either Members of Parliament (both the Houses - Lok Sabha and Rajya Sabha) and all the Members of all State Assemblies in India and members of the Judiciary should come forward to link their accounts and profiles discussed above so that the common man does not hesitate to link their all profiles and to achieve this target Government needs to build a Trust among its citizens. While the poor, when lured to receive subsidies, scholarships, NAREGA payments may not have to think much to execute the linking but it is a million dollar question if Big Bigs  including political leaders, big business houses will oblige the Government authorities in thier venture. 

Know Your Company - KYC

Now take the case of Registrar of Companies with individuals on their Board of Directors. Will such individuals provide the UIDAI numbers to Registrar of Companies, so that such individuals can neither befool the Registrar  of Companies nor the gullible investors by disappearing from the scene of one company flouted by them and flouting another company. If UIADI or Aadhar Card number is provided by such individuals in Certificate of Incorporation of any Limited Company then public, SEBI or ROC will be in a position to know their stake in other companies.

As you are surfing through our Know Your series by ....WQAINDIA, the concept is based on KYC guidelines of RBI.

Know Your Series by........WQAINDIA

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