India rolls out digital customer ID system as payment firms resist one‑click UPI checkout

India will launch a common customer identification system, called Central Know‑Your‑Customer 2.0 (CKYC), for banks and insurers in August, with mutual funds and brokerages to join later. The framework lets institutions access verified records from a central registry with a one‑time customer consent, aiming to simplify account opening, improve data quality and curb fraud. The Reserve Bank of India, the Securities and Exchange Board of India and the insurance regulator are jointly overseeing the rollout.

At the same time, several Indian digital‑payments firms—including Paytm, CRED and Flipkart’s Super.money—have written to the National Payments Corporation of India opposing a proposal for a one‑click UPI checkout. The plan would let merchants store a customer’s preferred UPI handle for instant payments, which the firms say could entrench the dominance of larger apps such as PhonePe and Google Pay and reduce competition for smaller players. NPCI has not responded to the objections. UPI processed over 227 billion transactions worth more than 28 trillion rupees in June.