PAN 2.0 project to reduce costs for fintech companies: experts

Sanjeev Mehta, former Managing Director at Customary Chartered Financial institution and now main a Greenfield startup enterprise, praised the Cupboard’s approval of PAN 2.0 venture. “It is a transformative transfer that can assist fintech and different firms cut back prices whereas streamlining operations,” he stated.

Mehta emphasised the significance of consolidating databases at present maintained by two authorities–Protean eGov Applied sciences Ltd (previously NSDL) and UTI Infrastructure Expertise and Providers Restricted (UTIITSL)–into a unified system.

“The venture will allow a single supply of reality and a unified id for shoppers. With a single interface and integration, it eliminates the complexities of sustaining a number of programs. This has been a long-standing demand from the trade,” he stated.

At current, each Protean and UTIITSL are approved to challenge PAN playing cards and provide on-line and offline companies for brand new purposes, corrections, updates, and monitoring. Below PAN 2.0, new PAN playing cards will likely be issued utilizing the upgraded system, and current PAN information will likely be merged right into a centralized database.

Mehta highlighted that fintech firms and banks rely closely on PAN for authentication, database monitoring, and underwriting processes. “From a credit score perspective, this single system will streamline integrations and guarantee dependable verification of PAN credentials, enhancing the general credit score ecosystem.”He additionally clarified that whereas current PAN playing cards will stay legitimate, people can improve to a brand new PAN card that includes added functionalities corresponding to QR codes and up to date designs. “The PAN quantity will stay the identical, however customers can go for a refreshed model with trendy options. The migration to the brand new system will occur robotically for all current PAN holders,” Mehta stated.Dr. Vimal Joshi, a company lawyer and Supreme Court docket advocate, stated the PAN 2.0 venture is anticipated to deal with the difficulty of PAN card duplication successfully.

“With a single authority issuing PAN playing cards, cases of duplication will likely be eradicated. This may also assist cut back litigation, as many court docket instances at present contain people utilizing a number of PAN numbers.”

Joshi stated that the PAN 2.0 venture marks a vital step in enhancing India’s monetary infrastructure, streamlining processes, and boosting effectivity for companies and people alike.

On Monday, the Cupboard accepted PAN 2.0 Mission of the Revenue Tax Division. The monetary implications for the PAN 2.0 Mission will likely be Rs. 1,435 crore.

PAN 2.0 Mission permits technology-driven transformation of taxpayer registration companies.