the finance minister nirmala sitharaman today announced that nonbanking financial companies will be permitted to use the aadhaar based bank mandated kyc to avoid repeating the process for the customers the finance minister said the following in her press conferencenbfcs to be permitted to use aadhaar authenticated bank kyc to avoid repeated processesnecessary changes shall be made in pmla rules and aadhaar regulationseasier faster tracked onboarding of customersthis will increase convenience for customers as they will not need to undergo the kyc process again when applying for loans from nbfcs if they have already got their kyc done at a bank currently a customer is required to undergo kyc process again and again with the different financial institutions the move will simplify and quicken up the process of availing credit nsitharaman pibindia mibindia finminindia more credit support for purchase of houses vehicles consumption g nsitharamanoffice nsitharamanoffc 1566566848000 recently the government amended the prevention of money laundering pmla act to allow digital kyc the amendment clarifies the various modes by which banks and nbfcs can capture the customers data electronically the amendment also allows the financial entities to capture full details through ekyc thereby removing the need to provide the physical documents the recent pmla amendment also allow the use of electronic documents besides physical documents to do the know your customer processthe electronic documents can be accessed from the digital locker system which includes government of indias digi locker breaking great news for digilocker the prevention of moneylaundering maintenance of records rules 2005 pmla digilocker digilockerind 1566381061000 satyam kumar ceo cofounder loantap says it brings bank fintech relationship at an equilibrium right now banks are gaining customers sometimes sometines at the expense of fintech platforms now we hope to see some fintech players who will be able to convince banks to incorporate new age products or have a frictionfree journey on their database or possibly by tieing up with a few big banks you can cover a majority of the customers with instant product which is going to be a game changer in the retail loan segment essentially this will be our journey towards neobanking when you do not have to do multiple kyc or you can reach out to jandhan customers with sachet products across india