New Delhi [India], November 27 : Industry leaders have hailed the Union Cabinet's approval of the PAN 2.0 Project, adding that the decision is a landmark step in the country's journey towards a unified and efficient data infrastructure.
The Union Cabinet has approved the PAN 2.0 Project to streamline and modernise the process of issuing and managing PAN and TAN, making it more user-friendly and efficient.
The initiative aims to consolidate multiple databases, enhance the functionality of the existing PAN system, and address long-standing demands for a single interface for identification and verification.
Underscoring the importance of PAN 2.0 in simplifying the data infrastrastructure, former MD - Standard Chartered Bank, Sanjeev Mehta said, "This is a very critical initiative from a government perspective to actually consolidate all the databases and data which was being issued in older days. There are two different authorities issuing PAN. With this single interface and single integration, the consolidation would allow single source of truth and single identity for the consumers."
Mehta highlighted the new features, such as QR codes and enhanced designs, which will allow users to upgrade while retaining their existing PAN numbers.
"Your name would be migrated. You would be migrated onto the new system by default," he added.
He also noted how the new system would benefit fintech companies and banks by reducing costs and risks associated with multiple system integrations.
Shaji K V, NABARD Chairman urged fintech companies to use the unified PAN system to address challenges faced by marginalized communities.
"The fintech world should look at challenges faced by the marginalized sections and the needy sections and find out solutions for them. Rather than they look at their challenges, they should look at opportunities on those challenges which the rural sector or the marginalized sector is facing," he stated.
Going further, the NABARD Chairman highlighted the growing rural investments and how financing could be better channeled toward productive assets like tractors and combine harvesters.
"We are looking at more investments in productive assets," he said.
"The next level of improvement should come in the productivity in agriculture and for productivity we need a lot of innovative interventions. For that we need agritech companies, rural tech companies to come and play," he stated.
Dr. Vimal Joshi, Corporate Lawyer and Supreme Court Advocate also hailed the decision, adding that PAN 2.0 is a significant step in advancing India's digital infrastructure and curbing fraud.
"There will be a lot of relief in these things. The fraud in banking will be completely stopped. A common man's money will remain with a common man. Your money cannot be used by anyone else. Fake identity cannot be created," he stated.