The Financial Stability and Development Council (FSDC) held its 29th meeting in Mumbai under the chairmanship of the Union Minister for Finance and Corporate Affairs. Key discussions centred on financial stability, refund of unclaimed amounts, and improvements in KYC processes across the financial sector.
The Council analysed India’s preparedness to address macro financial challenges, placing significant emphasis on cybersecurity within the financial sector.
The FSDC considered adopting a financial sector-specific cybersecurity strategy in line with recommendations from the Financial Sector Assessment Programme (FSAP) 2024-25. This move aims to enhance the cyber resilience framework, recognising the growing importance of protecting financial systems from emerging threats.
One of the crucial agenda items was reducing unclaimed assets held across various financial segments, including bank deposits, dividends, shares, post office accounts, insurance and pension funds.
The Union Finance Minister urged regulators and departments to accelerate the refund process by organising coordinated special district level camps. This initiative involves collaboration between the Reserve Bank of India (RBI), Securities and Exchange Board of India (SEBI), Ministry of Corporate Affairs (MCA), Pension Fund Regulatory and Development Authority (PFRDA), Insurance Regulatory and Development Authority of India (IRDAI), and other agencies.
The FSDC highlighted the need to simplify and digitalise the Know Your Customer (KYC) process across the financial sector. The Finance Minister stressed the importance of ensuring a seamless experience for citizens, including Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs).
The proposed common KYC norms and digital onboarding procedures aim to streamline customer identification, thereby facilitating easier access to financial services.
The Council deliberated on trends in financing flows and explored strategies to increase the investment ratio in India. Discussions also covered reforms in factoring services and improving the effectiveness of account aggregator networks. Strengthening inter-regulatory coordination was identified as a key step to support the broader development and resilience of the financial sector.
The meeting included participation from senior officials such as the Governor of the Reserve Bank of India, the Finance Secretary, Secretaries of various financial departments, and heads of key regulatory bodies, including SEBI, IRDAI, and PFRDA.
The FSDC reviewed progress on pending decisions and underscored the importance of vigilant, proactive measures to mitigate risks in the domestic and global macro financial environment.
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The 29th FSDC meeting reaffirmed the Council’s commitment to maintaining financial stability and fostering growth through regulatory reforms and enhanced cooperation. Key initiatives discussed include accelerating refunds of unclaimed assets, simplifying KYC processes, and strengthening cyber resilience, all aimed at improving the financial ecosystem for stakeholders across India.
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Published on: Jun 11, 2025, 1:37 PM IST
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