Union Finance Minister, Nirmala Sitharaman on Wednesday, in February 1, 2023 while presenting the Union Budget 2023 announced that as part of the government’s move to ensure ease of doing business, the business establishments are required to have a Permanent Account Number (PAN).

According to the Finance Minister, the Permanent Account Number (PAN) will be used as the common identifier for all digital systems of specified government agencies, which will be facilitated through a legal mandate.

The FM further said this common identifier will simplify the Know Your Customer (KYC) process by adopting a ‘risk-based’ instant approach instead of ‘one-size-fits-all’ approach. “The financial sector regulators will be encouraged to have a KYC system fully amenable to meet the needs of digital India,” the FM added.

Currently, there are several identifiers used at the Centre and State levels such as Goods and Services Tax Identification Number (GSTIN), Taxpayer Identification Number (TIN), Tax Deduction Account Number (TDA), Employees’ Provident Fund Organization (EPFO), Corporate Identification Number (CIN).

The use of a single common identifier PAN, basic, common information and documents can easily fetched across systems. This integrated system both at the state and central level departments will help ease the burden of the users of submitting their documents all over again, it will help them ensure their authenticity and also help in faster processing of requests.

So there won’t be any hassle and the processes involved in applying for clearances, registrations and permits will become easier and simpler.

Apart from that, the Minister also stated that a one-stop solution for reconciliation and updating of identity and address of individuals maintained by various government agencies and regulators will also be set up using DigiLocker service and Aadhaar as the foundational identity.

For instance, currently if one updates their address in Aadhaar, the address doesn’t gets updated on their Income Tax portal registration. But with DigiLocker, not just the Aadhaar is updated but the data across multiple portals will be updated digitally.

The DigiLocker service is currently being used to store and generate documents like PAN’s electronic version, Aadhar, degrees, driver licenses and academic certificates. One must have an Aadhaar card to open an DigiLocker account.

The FM also stated that for obviating the need for separate submission of same information to different government agencies, a system of ‘Unified Filing Process’ will be set up.

“Such filing of information or return in simplified forms on a common portal, will be shared with other agencies as per the filer’s choice,” she said.