FM Pushes for Streamlining KYC Regulations to Enhance Customer User Experience
At the 29th meeting of the Financial Stability and Development Council (FSDC), Union Finance Minister Nirmala Sitharaman stressed the need to expedite the process of returning unclaimed financial assets to their legitimate owners and to streamline know-your-customer (KYC) regulations to enhance user experience.
The finance ministry stated that the FSDC also discussed matters pertaining to macro-financial stability and India's readiness to address them.
At its most recent meeting, the FSDC also presented a plan for implementing previous rulings and budgetary announcements, emphasizing investor onboarding, unclaimed assets, and regulatory efficiency, it stated.
To facilitate claims of unclaimed monies, which range from inactive bank accounts to insurance and pension money, regulators were requested to set up coordinated multi-agency district-level camps during the FSDC meeting in Mumbai, which was chaired by Sitharaman.
Sitharaman stated that claims must be reimbursed as soon as possible while keeping in mind the interests of regular people.
To guarantee a smooth KYC process across financial services, Sitharaman also exhorted members to be proactive.
In addition to monitoring progress on previous decisions and budget releases, the FSDC also discussed increasing the digitalization of the onboarding process and prescribing common KYC norms, including for NRIs.
According to the finance ministry, initiatives to decrease unclaimed financial assets, improve regulatory responsiveness, increase investments, broaden factoring services, and fortify the ecosystem of account aggregators were among the main topics of discussion.
The ministry stated that the FSDC reviewed cybersecurity preparedness in the financial sector after the Financial Sector Assessment Programme (FSAP) 2024–2025 and talked about developing a sector-specific cyber resilience strategy. The council also evaluated domestic and international macro-financial developments and emphasized the need to be vigilant against potential systemic risks.
MoS finance Pankaj Choudhary, finance secretary Ajay Seth, chief economic adviser V. Anantha Nageswaran, RBI governor Sanjay Malhotra, and the heads of Sebi, Irdai, PFRDA, IFSCA, IBBI, and CERT-In were among the top ministry of finance officials who attended the 29th meeting of the FSDC.
The ministry stated that the FSDC reviewed cybersecurity preparedness in the financial sector after the Financial Sector Assessment Programme (FSAP) 2024–2025 and talked about developing a sector-specific cyber resilience strategy. The council also evaluated domestic and international macro-financial developments and emphasized the need to be vigilant against potential systemic risks.
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MoS finance Pankaj Choudhary, finance secretary Ajay Seth, chief economic adviser V. Anantha Nageswaran, RBI governor Sanjay Malhotra, and the heads of Sebi, Irdai, PFRDA, IFSCA, IBBI, and CERT-In were among the top ministry of finance officials who attended the 29th meeting of the FSDC.