Key Points
The Financial Stability and Development Council (FSDC), headed by union finance minister Nirmala Sitharaman decided on Wednesday to firm up a strategy to simplify and digitalise the KYC (know-your-customer) process in the financial sector and take more steps to curb unauthorised lending through online applications...
The move comes close on the heels of the RBI imposing restrictions on Paytm Payments Bank Ltd (PPBL) reportedly for the entity's failure to comply with KYC norms and money laundering concerns, among others...
The 28th meeting of the FSDC also laid emphasis on constant vigil and proactive efforts towards detecting emerging financial stability risks and taking swift remedial measures, given domestic and global macro-financial situation...
The council also decided to kick-start fund raising by enterprises through social stock exchanges and continue with proactive efforts towards detecting emerging financial stability risks and taking the necessary measures to maintain the resilience of the financial sector...
"The ongoing inter-regulatory issues were also discussed 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," it said.. (You can now subscribe to our Economic Times WhatsApp channel).
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Government plans to simplify KYC process across financial sector. Check details
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FSDC holds 28th meeting; to formulate strategy to simplify and digitalise KYC process in financial sector
21, Feb, 24The Union Finance Minister, Nirmala Sitharaman, chaired the 28th meeting of the Financial Stability and Development Council (FSDC), focusing on implementing council decisions and Union Budget announcements. Key discussions included prescribing uniform KYC norms, inter-usability of KYC records, simplification and digitalisation of KYC processes, promoting fund-raising by social enterprises, and addressing unauthorised lending through online apps.