Author: India Writes Network

Banking reforms: How to cure KYC headache?

- by India Writes Network

A far-reaching reform would be to use the PAN database for giving KYC clearances for banking and investment services as well. Do we really need three separate and parallel systems for customer data for tax, banks and mutual funds? Merging the KYC process of the banking and investment services into the PAN system of the Tax department would greatly improve efficiency all around. Indian citizens and thousands of NRI/PIOs and foreigners would be spared the nuisance of doing the KYC process which simply reuses the same data and does not add any value.
Prime Minister Modi is to be lauded for pushing against bureaucratic resistance in giving millions of Indians access to the banking system through the Jan Dhan Yojana. When reforms are proposed there is opposition from the establishment. But where a decision is made, the bureaucracy will find a way to implement it. Now the prime minister has the chance to simplify and streamlining the outdated, repetitive and inefficient KYC process by basing it on a single database of the PAN system. This will save an enormous amount of time and money for customers, bank employees, and be more effective in tracking down tax evaders and criminals. He will be thanked for this service by millions of users.

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Is China’s dealings with the world set to change?

- by India Writes Network

Change seems to be afoot in China’s dealings with the world. At a major conference on foreign affairs in Beijing on November 28-29, President Xi Jinping called on his colleagues to create a “more enabling environment” for China’s development. Xi’s remarks are nuanced and balanced and seek to distance China from its brash and assertive posture which has generated considerable unease in the regions neighbouring China.
At another level, China is signalling that it is a big power and wants to be seen in a more benign light as one, rather than being feared and distrusted , as it is at present.
At a third level, it also reflects a Chinese understanding that despite its impressive capabilities, it is still a relatively passive power as is evident from the Chinese absence in dealing with any of the serious global crises like Ukraine, Syria or Afghanistan.

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