Union Minister for Finance and Corporate Affairs, Smt. Nirmala Sitharaman, chaired the 29th meeting of the Financial Stability and Development Council (FSDC) in Mumbai, where she emphasised the need for citizen-centric reforms in the financial sector. The high-level meeting saw the presence of Minister of State for Finance Shri Pankaj Choudhary and other key members of the Council.
At the heart of the discussions were measures to enhance regulatory responsiveness, expedite the return of unclaimed financial assets to rightful claimants, and improve the overall user experience through simplified Know Your Customer (KYC) processes.
Coordinated Effort to Refund Unclaimed Amounts
In a significant push for financial accountability and consumer rights, the Finance Minister directed regulators and departments to actively collaborate in organising special district-level camps for returning unclaimed financial assets. These include unclaimed bank deposits, dividends, shares, post office accounts, and insurance and pension funds. Agencies like 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), and Insurance Regulatory and Development Authority of India (IRDAI) are expected to coordinate efforts with banks and other financial institutions to facilitate the refund process.
“The interests of common citizens must be prioritised,” the Finance Minister urged, reiterating the importance of prompt and seamless refunds to legitimate claimants.
Push for Seamless KYC and Digital Onboarding
The Council also took up the issue of streamlining KYC procedures across financial services. Smt. Sitharaman called for proactive steps to ensure a uniform, simplified, and digitised KYC framework that can enhance ease of doing business and financial inclusion. Special attention was given to easing digital onboarding for Non-Resident Indians (NRIs), including Persons of Indian Origin (PIOs) and Overseas Citizens of India (OCIs), particularly in capital markets.
Focus on Cybersecurity, Factoring Services, and Financial Inclusion
The FSDC also reviewed India’s cyber resilience in light of recommendations from the Financial Sector Assessment Programme (FSAP) 2024-25. The Council discussed the need for a robust cybersecurity strategy tailored specifically for the financial sector.
Additional issues discussed included:
- Improving the reach and utility of factoring services.
- Strengthening the Account Aggregator ecosystem.
- Increasing investment flows by analysing financing trends.
- Establishing frameworks for evaluating the responsiveness of existing regulations.
Strengthening Inter-Regulatory Coordination
The Council reaffirmed the importance of inter-agency coordination to safeguard macro-financial stability and support comprehensive sectoral development. Members acknowledged the evolving global and domestic financial landscape and stressed the need for vigilance and systemic safeguards.
The meeting also took note of the progress made by the FSDC Sub-Committee, chaired by the RBI Governor, on earlier decisions and strategic objectives.
Key Attendees
The session witnessed participation from top financial regulators and senior officials including:
- Shri Sanjay Malhotra, Governor, RBI
- Shri Ajay Seth, Finance Secretary
- Shri Nagaraju Maddirala, Secretary, Department of Financial Services
- Ms. Deepti Gaur Mukerjee, Secretary, MCA
- Shri Arvind Shrivastava, Secretary, Department of Revenue
- Dr. V. Anantha Nageswaran, Chief Economic Adviser
- Shri Tuhin Kanta Pandey, Chairperson, SEBI
- Shri K. Rajaraman, Chairperson, IFSCA
- Dr. Sanjay Bahl, Director General, CERT-In
- Other senior officials from IRDAI, PFRDA, IBBI, and the DEA
The 29th FSDC meeting reaffirmed the government’s commitment to a secure, inclusive, and citizen-first financial system—one that balances regulatory oversight with simplified access and enhanced consumer rights.
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