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Information Utilities Can Use PAN Card To Verify

Thu, 30 January 2025
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Information Utilities (IU), which store credit information to provide high-quality, authenticated information about debts and defaults, can now use the PAN card to verify the identity of users, according to the amended technical guidelines issued by the insolvency regulator on Wednesday. 

The PAN card has been included in the list of officially valid documents which can be used by IUs, one of the pillars of the Insolvency and Bankruptcy Code, to verify users. IUs were floated to cut down on delays and disputes in insolvency proceedings.  

As on date, the National E-Governance Services Limited (NeSL), promoted by banks and insurance companies, is the only Information Utility or IU registered with the IBBI. Most of the institutional financial creditors are submitting financial information to it.

The amended guidelines, issued by the Insolvency and Bankruptcy Board of India, require the IU to obtain a Sub-Authentication User Agency license from the Unique Identification Authority of India (UIDAI) for demographic authentication of users during registration process.

"The original guidelines were quite elaborate by way of a 45-page document. The amendments were, however, necessary to streamline the process and to remove ambiguity," Jyoti Prakash Gadia, managing director, Resurgent India, a merchant banking firm, said. 

-- Ruchika Chitravanshi/Business Standard