Finance Minister Nirmala Sitharaman recently chaired the 29th Financial Stability and Development Council (FSDC) meeting, pushing for significant reforms to benefit citizens and strengthen India’s financial sector.
Swift Refunds and Streamlined KYC for Citizens
A key focus of the meeting was ensuring that unclaimed financial assets, like dormant bank deposits and forgotten insurance or pension funds, are swiftly returned to their rightful owners. Sitharaman urged regulators to organize coordinated multi-agency district-level camps to make the claims process easier and faster for people. “The interest of common citizens must be kept in mind,” she stressed, calling for expeditious refunds.
Beyond refunds, the Finance Minister emphasized the need to streamline Know Your Customer (KYC) norms across all financial services to improve the user experience. Discussions included implementing common KYC norms, even for NRIs, and increasing the digitalization of the onboarding process.
Bolstering Cyber Resilience and Macro-financial Stability
The FSDC also tackled crucial issues concerning India’s financial resilience. Following the Financial Sector Assessment Programme (FSAP) 2024-25, the council discussed strengthening the financial sector’s cyber resilience framework through a dedicated strategy. This aims to protect against increasing cyber threats.
Furthermore, the council assessed both global and domestic macro-financial developments, highlighting the importance of remaining vigilant against potential systemic risks that could impact the financial system.
Other Key Initiatives
The meeting also saw discussions on a range of other critical areas, including:
- Strategies to reduce unclaimed financial assets.
- Enhancing regulatory responsiveness.
- Boosting investments.
- Expanding factoring services.
- Strengthening the account aggregator ecosystem.
The 29th FSDC meeting was attended by top finance ministry officials and heads of major regulatory bodies, underscoring the government’s commitment to a stable, secure, and citizen-centric financial ecosystem.