Expedited Refunds and Streamlined KYC: Steering the Path to Financial Stability

Finance Minister Nirmala Sitharaman urged quicker refunds of unclaimed deposits and streamlined KYC processes at the 29th FSDC meeting. The council discussed strategies for financial stability and emphasized the importance of a coordinated approach among regulations and digital improvements. A special focus was placed on cyber resilience and unclaimed deposits management.

Finance Minister Nirmala Sitharaman called for swift action from regulators and departments to expedite refunds of unclaimed deposits, urging a more user-friendly and seamless KYC (Know Your Customer) process. Chairing the 29th Financial Stability and Development Council (FSDC) meeting, she emphasized prioritizing the interests of common citizens in financial dealings.

During the meeting, a proactive approach was encouraged, particularly in advancing common KYC norms through digitalization and simplification. These measures are meant to facilitate smoother financial interactions, particularly for Non-Resident Indians (NRIs), including Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs). District-level campaigns involving RBI, SEBI, and other financial entities are planned.

The council also addressed macro-financial stability and cyber resilience, contemplating strategies to handle emerging trends and risks. Discussions included further strengthening inter-regulatory coordination and cyber safety frameworks, aligned with the Financial Sector Assessment Programme. Enhanced factoring services and account aggregator networks are among the improvements considered.

(With inputs from agencies.)