Context:
In the 2025 meeting of the Financial Stability and Development Council (FSDC) chaired by Finance Minister Nirmala Sitharaman in Mumbai, key decisions were taken to enhance financial sector efficiency and consumer protection through a universal KYC framework, improved cybersecurity, and faster refund of unclaimed financial assets.
Key Highlights:
Universal KYC Framework Proposed
- All major financial regulators — RBI, SEBI, IRDAI, PFRDA, MCA — will coordinate with the Central KYC Registry (CKYCR).
- Goal: Inter-usability of KYC records across the financial system to eliminate multiple verifications.
- Special focus on digital onboarding for NRIs, PIOs, and OCIs in capital markets.
KYC Simplification and Digitisation
- FSDC aims to:
- Prescribe common KYC norms across regulators
- Promote full digitisation of onboarding and verification
- Improve user experience and compliance transparency
Strengthening Cyber Resilience
- Council discussed a sector-specific cybersecurity strategy for:
- Financial institutions and intermediaries
- Mitigating cyber risks from increasing digital transactions
- Ensuring financial system stability
Push for Refund of Unclaimed Funds
- Special district-level refund camps to be organized for:
- Bank deposits (via RBI)
- Unclaimed dividends and shares (via IEPFA, MCA)
- Insurance and pension funds (via IRDAI, PFRDA)
- Aim: Protect consumer interest and ensure rightful owners receive dues promptly.
Vigilance on Macro-Financial Risks
- FSDC reviewed domestic and global financial trends.
- Emphasized proactive risk management to safeguard financial stability.
- Called for timely implementation of past policy decisions and Union Budget announcements.
