Implementation of digital KYC to take a months’ time; CDSC has started working towards it
CDCS is working towards the implementation of digital KYC. As per the officials at CDSC, the implementation will take a months’ time. This step is being taken by CDSC to reform the requirement of repeatedly filling up the KYC form by investors. For this purpose, coding of the data is currently happening.
Since last Jestha, the new deposit accounts opened have been using the new KYC but it will take a months’ time to completely digitize KYC of all the existing customers since there are lakhs of customers whose KYC is not as per the new format. The digital KYC has already been tested and the old KYC formats are being converted as per the required format. CDSC has planned to complete this work right after the end of Tihar.
After all the forms have been digitized, CDCS has also planned to use it in the secondary market for the purpose of trading. However, this step will be discussed in detail after the completion of data coding.
Upon implementation, the investors will not have to fill the KYC form again and again. Also, the investors will be able to trade through all the existing 50 brokers. Currently, the investors have to fill out different KYC forms of different formats. This barrier will be completely abolished after the implementation of digital KYC.
After the digitization, each individual will get a unique code. The unique code will generate the digital KYC of the individual upon request. The data will be with CDSC. So instead of filling out the form, an individual just needs to use the unique code in place of KYC. If an individual wants to change the given information, he/she has to formally request change from the place of digitization of KYC. Upon request, the required change will take place.
Currently, KYC is required to trade in the securities market and to open a bank account. After the implementation of digital KYC, it will save time and paper work required. Slowly and steadily, we are moving toward a paper-less economy.
