Big news for PAN Card holders. The PAN card is now set to play a role in identity verification. According to the updated technical guidelines released by the insolvency regulator on Wednesday, the Insolvency and Bankruptcy Code recognizes the PAN card as an official document for verifying user identities, putting it on the same level as other valid documents.
Information utilities keep track of financial data about debtors in electronic databases, helping to eliminate errors and minimize delays and disputes in bankruptcy cases. Experts believe that allowing the PAN card to be used for identity verification will streamline financial processes, benefiting a wide range of users.
Following the revised guidelines from the Insolvency and Bankruptcy Board of India (IBBI), information utilities must obtain a sub-authentication user agency license from the Unique Identification Authority of India (UIDAI) to authenticate user demographics during registration.
The government is rolling out PAN 2.0.
The Modi government is introducing PAN 2.0, which will function similarly to the m-Aadhaar or e-Aadhaar systems. You might be wondering if PAN 2.0 will feature dynamic QR codes for KYC, identity verification, or address proof. The PAN card already acts as both a tax identifier and a physical ID. With the new PAN 2.0 initiative, the system is shifting to a digital format.
To support this upgrade, the government has set aside Rs 1,435 crore for a complete overhaul of the existing PAN infrastructure. They’ve stated that PAN 2.0 will be a more advanced version aimed at improving user experience. Currently, the electronic PAN 1.0 has limited KYC capabilities and cannot be used as address proof in any way.