The KYC menace

The Election Commission's special intensive revision of electoral rolls presently underway in Bihar has come in for much criticism for its rigid approach, which is being deemed respondent-unfriendly, and with possible political consequences.

- SHREEKANT SAMBRANI

The Supreme Court's instruction last week to include Aadhaar is supposed to ease this situation somewhat.

However, in Aadhaar, and now its latest insistence on biometrics, we may have created another monster, which, in the name of adding to the ease of countless transactions, we need to undertake online almost daily, and which actually results in hindering many, making most people tear their hair.

Another part is the insistence on know your customer (KYC) for all types of individual transactions, including for opening/renewing the bank account, telephone, electricity and gas connections, credit/debit/online payment cards, share trading, making fixed deposits, and even tatkal railway bookings.

The KYC procedures, in principle, are a good thing, helping prevent possible online frauds and identity thefts. It is the process and the manner in which KYC is sought to be implemented by most agencies, which are required to do so, that causes problems, often agonising ones.