PAN 2.0 Project: According to industry experts, the implementation of the PAN 2.0 project announced by the Center on Monday is expected to reduce costs for fintech companies.
Sanjeev Mehta, former managing director of Standard Chartered Bank and now leading a greenfield start-up venture, praised the Cabinet’s approval of the PAN 2.0 project. “This is a transformative initiative that will help fintech and other companies reduce costs while streamlining operations,” he said.
Mehta emphasized the importance of consolidating the database currently maintained by the two authorities – Protean eGov Technologies Ltd (formerly NSDL) and UTI Infrastructure Technology and Services Ltd (UTIITSL) into a unified system.
He said, “This project will enable a single source of truth and a unified identity for consumers. With a single interface and integration, it eliminates the complexities of maintaining multiple systems. It has been a long-standing demand.” Currently, both Protean and UTIITSL are authorized to issue PAN cards and offer online and offline services for new applications, corrections, updates and tracking.
Under PAN 2.0, new PAN cards will be issued using the upgraded system, and existing PAN data will be merged into a centralized database. Mehta highlighted that fintech companies and banks rely heavily on PAN for authentication, database monitoring, and underwriting processes.
“From a credit perspective, this single system will streamline integration and ensure reliable verification of PAN credentials, thereby enhancing the overall credit ecosystem.” He also clarified that while the existing PAN cards will remain valid, individuals can upgrade to a new PAN card with additional features. Like QR codes and updated designs. “The PAN number will remain the same, but users can opt for the latest version with advanced features. Migration to the new system will be automatic for all existing PAN holders,” Mehta said.
Corporate lawyer and Supreme Court advocate Dr. Vimal Joshi said the PAN 2.0 project is expected to effectively address the problem of PAN card duplication. This will also help reduce litigation, as many court cases currently involve people using multiple PAN numbers.
Joshi said the PAN 2.0 project marks an important step in enhancing India’s financial infrastructure, streamlining processes, and increasing efficiency for businesses and individuals alike. On Monday, the Cabinet approved the Income Tax Department’s PAN 2.0. The project was approved.The PAN 2.0 project will be Rs.1,435 crore.