According to government officials quoted in Business Standard on 11 July, the Finance Ministry and capital-markets regulator SEBI are finalising reforms that will allow non-resident Indians (NRIs) and foreign nationals to complete know-your-customer (KYC) checks entirely online. The proposal scraps the long-standing requirement that investors be physically present in India—or visit a bank branch overseas—to notarise and submit documents. Key elements include real-time video identification, Aadhaar-based authentication for NRIs who hold a UID, acceptance of verified digital signatures issued under other jurisdictions, and an e-notarisation workflow leveraging India’s Bharat Sign platform. The changes will apply to demat account opening, mutual-fund investments and onboarding of foreign portfolio investors (FPIs). For global mobility teams managing executive share plans, the change removes a persistent pain-point: expatriates on India assignments often had to make an extra trip to validate KYC before vesting shares or exercising stock options. Venture-capital funds welcoming overseas limited partners could also speed up capital calls. The Reserve Bank of India and the Ministry of External Affairs are assessing data-protection safeguards and the acceptability of remote biometric capture for high-risk clients. A public consultation is expected by August, with implementation targeted for the December quarter. If delivered, the reform would align Indian onboarding standards with those of Singapore and the UK, reinforcing New Delhi’s broader push to position India as an investment hub without compromising on anti-money-laundering controls.
Source: Business Standard
