In a move signalling a shift towards financial sector cohesion, India’s Financial Stability and Development Council (FSDC) has announced plans to standardise ‘know your customer’ (KYC) checks across the industry.
The Financial Stability and Development Council (FSDC) took stock of the preparations for the deliberations over financial sector issues to be taken up during India’s G20 Presidency in 2023.
The 26th meeting of the FSDC was chaired by Union Finance and Corporate Affairs Minister Nirmala Sitharaman in Mumbai on Thursday.
The Council, inter alia, deliberated on the Early Warning Indicators for the economy and our preparedness to deal with them, improving the efficiency of the existing Financial/Credit Information Systems, issues of governance and management in Systemically Important Financial Institutions including Financial Market Infrastructures and strengthening cyber security framework in the financial sector.
The council also taken up for discussion the issue of Common KYC for all financial Services and related matters, update on Account Aggregator and next steps, Issues relating to the financing of the Power Sector, strategic role of GIFT IFSC in New Aatmanirbhar Bharat, inter-regulatory Issues of GIFT-IFSC, and need for utilisation of the services of Registered Valuers by all Government Departments.
It was noted that there is a need to monitor the financial sector risks, financial conditions and market developments on a continuous basis by the Government and the regulators so that appropriate and timely action can be taken so as to mitigate any vulnerability and strengthen financial stability.
The meeting was attended by Dr. Bhagwat Kishanrao Karad, MoS (Finance); Pankaj Chaudhary, MoS (Finance); Shaktikanta Das, Governor, Reserve Bank of India; Dr. T V Somanathan, Finance Secretary and Secretary, Department of Expenditure, Ministry of Finance and Ajay Seth, Secretary, Department of Economic Affairs, Ministry of Finance among others.