Deadline for KYC with Aadhaar, PAN, Voter ID, and Driving License Extended to January 20

New Delhi (The Uttam Hindu): The Indian government has taken significant steps to enhance the security of Know Your Customer (KYC) data, with a focus on preventing misuse. To strengthen data protection, the government has proposed masking sensitive KYC identifiers such as PAN, Aadhaar, Voter ID, and Driving License numbers. Originally set for a December deadline, the implementation has now been extended until January 20, 2025. This extension gives individuals and financial institutions more time to complete the KYC process in line with the new security measures.

According to an official notice from the Central KYC Records Registry (CKYCRR) issued on December 16, 2024, the deadline for the masking of KYC identifiers has been postponed from December 16, 2024, 8:00 PM, to January 20, 2025, 8:00 PM, following requests from various Reporting Entities (REs).

**How Masking KYC Information Will Help Users**

The upcoming system, set to roll out on January 20, 2025, will mask sensitive information in KYC documents. Only the last four digits of identifiers like Aadhaar, PAN, Voter ID, and Driving License numbers will be visible. This move aims to enhance data privacy and security.

Under the new system, registered Reporting Entities (REs) will only be able to view the last four digits of KYC identifiers. To access full KYC details, REs will need to authenticate their identity and either download the record using the masked KYC identifier or a unique CKYC reference ID. This two-step authentication process is designed to improve data security and prevent unauthorized access.

**Preventing Unauthorized Access to KYC Data**

To further protect user data, the CKYCRR is introducing a new measure that limits access to KYC information based on unique IP addresses. This aims to prevent unauthorized access and misuse of sensitive data. In the past, regulated entities (REs) sometimes outsourced KYC collection to third-party providers, allowing them to access KYC data via their own IP addresses. To strengthen security, REs will now be required to access KYC records directly using their own IP addresses, ensuring that only authorized personnel can access the data.

The deadline for implementing this new security measure is December 31, 2024, and REs must make the necessary adjustments to comply with the updated requirements.