Regulating KYC in India

The video is based on our paper titled ‘Analysing KYC in India: Can we do things better?’. Rishab Bailey, Trishee Goyal, Renuka Sane, and Ridhi Varma of NIPFP compare India’s KYC norms with global standards. They show that faulty regulatory frameworks which do not account for the Indian socio-economic context and do not adequately consider the design of incentive structures can lead to unwanted regulatory outcomes. Therefore, the Indian KYC regulatory framework needs to be revised so as to: (a) better balance competing interests of dealing with money laundering and ensuring financial inclusion; (b) ensure incentive structures support the regulatory goals, including by limiting excessive compliance burdens and designing penalties appropriately.

Watch our video to understand the gist of the issue.

Read the paper here: