Key Highlights
- FM Sitharaman urges regulators to accelerate refunds of unclaimed deposits, dividends, shares, pension funds via district camps.
- She calls for standardized, simplified KYC across banks, insurers, securities, ensuring seamless claimant experience.
Finance Minister Nirmala Sitharaman urged regulators and departments to expedite the refund process for unclaimed funds in the financial sector, such as bank deposits, dividends, shares, post office accounts, insurance, and pension funds.
During the 29th meeting of the Financial Stability and Development Council (FSDC) here, the Finance Minister stated that special district-level camps must be held to ensure the timely and seamless refund of such assets to their rightful owners.
"This drive will be coordinated with the RBI, SEBI, MCA, PFRDA, and IRDA, as well as banks, pension agencies, and insurance companies. Unclaimed amounts include bank deposits, unclaimed shares and dividends managed by the IEPFA, and unclaimed insurance and pension funds managed by the IRDAI and PFRDA, respectively," she stated.
The Finance Minister also urged the Council to take proactive measures to ensure that citizens have a consistent experience with KYC processes throughout the financial sector.
She advocated for the adoption of common KYC standards, as well as the simplification and digitization of the KYC process, including digital onboarding for Non-Resident Indians (NRIs), including PIOs and OCIs, in the Indian securities market.
The FSDC discussed issues concerning macrofinancial stability and India's readiness to deal with them.
Based on an analysis of cybersecurity regulations, sectoral preparedness, and recommendations from the Financial Sector Assessment Programme (FSAP) 2024-25, the FSDC considered strengthening the Indian financial sector's cyber resilience framework through a financial sector-specific cybersecurity strategy.
The meeting also covered issues such as developing a strategy for putting previous decisions and budget announcements into action.
In addition to analyzing trends in financing flows as part of an investment ratio increase strategy, these involved regulators creating a suitable framework for assessing and enhancing the responsiveness of regulations and subsidiary instructions.
The FSDC also addressed new developments in the macroeconomic environment at home and abroad, stressing the need for vigilance. The Council acknowledged the significance of taking proactive measures to reduce possible threats to financial stability while putting in place suitable safeguards to guarantee the resilience of the financial system. To support the overall growth of the financial sector, the members agreed to improve inter-regulatory coordination.
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Moreover, the FSDC took note of the actions taken by members concerning the FSDC's outstanding previous decisions and the activities of the FSDC Sub-Committee, which is chaired by the RBI Governor.
Ajay Seth, the finance secretary and secretary of the department of economic affairs; Nagaraju Maddirala, the secretary of the department of financial services; RBI Governor Sanjay Malhotra; SEBI Chief Tuhin Kant Pandey; and other senior officials from the finance ministry and IRDAI attended the FSDC meeting.
