How integrating PAN 2.0 with Aadhaar and ‘e-Rupee’ can streamline investments and KYC
On your last vacation, remember the number of times you had to show your physical Aadhaar card and Permanent Account Number (PAN) card to comply with know-your-customer (KYC) norms at hotels and airports? For booking air/train tickets, boarding flights and trains, and checking into hotels, you must carry your KYC documents with you at all times. The same requirement goes for hospitals, banks, government offices and departments, and even some shopping centres.
Similarly, for opening a dematerialised (demat) and share trading accounts or for investing in mutual funds, a copy of your Aadhaar card must be scanned and uploaded as address proof and the PAN card as identity proof in the e-KYC window.
It’s said that we live in a digital era where everything is online. But the scenarios outlined only amplify the ground-level necessity of carrying physical KYC documents at all times.
Recently, the Union Cabinet approved the PAN 2.0 project with an outlay of ₹1,435 crore. The project will enable the use of PAN as a common identifier for the digital systems of specified government agencies.
It’s been clarified that all current PAN cardholders are automatically eligible for the PAN 2.0 upgrade and there is no need to reapply. Enhancements such as a dynamic QR code and a centralised portal for all PAN-related services such as allotment, updating, correction, and Aadhaar-PAN linking are designed to improve the usability of the PAN card, in alignment with the government's digitalisation objectives.
To request the new QR-enabled version, existing PAN card holders must log in to the income tax department’s unified portal and upload their identity and address proof. The e-PAN 2.0 will be offered free of charge to all taxpayers. Individuals
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