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The Move To Make PAN A Universal Identifier For All Digital Systems At Government Agencies Can Be A Game Changer For Digital Services Says Shilpa Ahluwalia, Partner Head, Fintech, Shardul Amarchand Mangaldas & Co.

The move to make PAN a universal identifier for all digital systems at government agencies, if utilized effectively, can be a game changer for digital services. For businesses, it can achieve what Aadhaar has done for individuals. PAN as the common identifier has the potential to simplify KYC processes, streamline access to public goods (including licenses and registrations) and make it easier to do business. It can also act as the single data point not just for regulators but also for distribution of private goods such as financial services. With adequate safeguards around data security and privacy, data linked to PAN could potentially be analysed to determine eligibility for credit, investment, insurance and other financial products, improving, for example, credit access for SME and MSME businesses. This move will also facilitate the building of a centralized KYC database that could significantly lower KYC costs for banks and other financial institutions when onboarding smaller businesses.


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