Expressing concern over the tiring process of submitting know-your-customer (KYC) paperwork, Shaadi.com founder Anupam Mittal, called for the Finance Ministry’s intervention to reduce the process of filing KYC for startups and angel investors. In his latest post on X, the Shark Tank India judge called for the need for the implementation of policies that provide a conducive environment for Indian startups.
He also mentioned the fact that the Income Tax department has all the details of most of the registered investors and ruled out the need for the need of intensive paperwork.
Tagging Finance Minister Nirmala Sitharaman’s official X accounts, Mittal wrote, “ Madamji dekhiye pls, it’s an unnecessary waste of time that sucks up countless unproductive hours of our country’s brightest in @PMOIndia.”
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Addressing Shaadi.com founder’s post, the IT department commented, “Please write to us with your specific issue/query (along with PAN & your mobile number) via email at orm@cpc.incometax.gov.in so that our team can get in touch with you.”
KYC trouble for startups and fintech
In response to the IT department’s comment, Mittal refrained from pointing out a single issue and mentioned the troublesome procedure of filing KYC documents with the IT department as his main concern.
Anupam Mittal’s comments on KYC paperwork have come at a time when Paytm Payments Bank is facing RBI action for multiple reasons including complaint lapses found in its KYC process.
Recently, the digitisation and simplification of KYC across all fintech segments was discussed in a meeting chaired by Finance Minister Nirmala Sitharaman with start-up and fintech ecosystem entities. The other points that were discussed in the meeting were the cost of lending/funding for critical areas, including the priority sector, should be rationalised; RBI, DPIIT and MoF to look at the change of ownership holding and control of listed fintech companies to enable them to be in sync with regulatory compliance; and issues about cybercrime.
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Published: 29 Feb 2024, 08:22 PM IST