Govt plans to simplify, digitalise KYC process

New Delhi: Finance Minister Nirmala Sitharaman chaired the meeting of the Financial Stability and Development Council (FSDC) on Wednesday which discussed the issues related to India’s macro financial stability and the preparedness to deal with them.

The FSDC also discussed plans to formulate a strategy to simplify and digitalise the KYC process in the financial sector. Prescribing uniform KYC norms and inter-usability of KYC records across the financial sector are on the anvil, according to a Finance Ministry statement.

Besides, the meeting discussed ways to arrest the harmful effects of unauthorised lending through online apps and measures to curb their further spread.

The issue of kickstarting fund-raising by social enterprises through social stock exchanges also figured at the meeting.

The ongoing inter-regulatory issues were taken up to support GIFT IFSC in its strategic role to become one of the world’s premier international financial centres and perform its envisioned role of facilitating foreign capital and financial services for the domestic economy.

The FSDC considered the domestic and global macro-financial situation and emphasised that the members need to maintain constant vigilance and continue their proactive efforts towards detecting emerging financial stability risks and taking the necessary measures to maintain the resilience of the financial sector.

The FSDC members also decided to strengthen inter-regulatory coordination to further develop the financial sector so that it continues to provide the requisite financial resources for inclusive economic growth, the statement said.

The FSDC also took note of the activities undertaken by the FSDC Sub-Committee chaired by the Governor, RBI, and the action taken by members on the previous decisions of the FSDC.

The meeting was attended by Minister of State for Finance Bhagwat Kishanrao Karad; Shaktikanta Das, Governor, Reserve Bank of India and senior finance ministry officials.