29th FSDC Meet Focuses on Quick Refunds, Seamless KYC & Financial Sector Reform

In a decisive move toward strengthening India’s financial system, Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman chaired the 29th meeting of the Financial Stability and Development Council (FSDC) in Mumbai on 10th June 2025. The meeting focused on multiple reforms including refund of unclaimed assets, streamlining KYC norms, enhancing cybersecurity, and increasing investment flows.

🔑 Key Highlights from the Meeting

✅ Proactive Refund Drive for Unclaimed Assets

The Finance Minister strongly urged all financial sector regulators and departments to expedite refunds to rightful claimants of unclaimed assets, such as:

• Unclaimed bank deposits

• Dividends and shares under IEPFA

• Insurance and pension funds with IRDAI and PFRDA

To implement this, district-level camps will be held in collaboration with RBI, SEBI, IRDAI, PFRDA, and MCA, along with banks, insurance providers, and pension agencies.

“The interest of common citizens must be kept in mind,” stressed Sitharaman, calling for coordinated efforts to return these funds.

🔄 Simplifying and Digitizing KYC

The FSDC emphasized the urgent need to:

• Prescribe common KYC norms

• Digitize onboarding processes

• Enable smooth KYC for Non-Resident Indians (NRIs), Persons of Indian Origin (PIOs), and Overseas Citizens of India (OCIs)

This would enhance user experience and promote seamless access across the financial ecosystem.

🔒 Cybersecurity & Financial Resilience

In light of insights from the FSAP 2024–25, the council deliberated on improving cybersecurity by:

• Establishing a sector-specific cybersecurity strategy

• Enhancing cyber resilience frameworks across banks, NBFCs, and fintech players

This aligns with global best practices for ensuring macro-financial stability.

📊 Strengthening Financial Infrastructure

The Council also discussed:

• Improving responsiveness of financial regulations

• Expanding access to factoring services

• Enhancing Account Aggregator Networks to empower users and improve credit access

• Monitoring investment flow trends to boost the investment-to-GDP ratio

🤝 Strengthened Inter-Regulatory Coordination

The meeting stressed the importance of robust coordination among financial regulators to ensure:

• Consistency in implementation of reforms

• Rapid action on previously agreed decisions

• Continued macroeconomic vigilance amid global uncertainties

The FSDC Sub-Committee, chaired by RBI Governor, presented an update on actions taken and progress achieved.

📌 About FSDC

Established to coordinate financial stability and development, the FSDC comprises leaders from India’s top financial regulatory bodies, including:

• Reserve Bank of India (RBI)

• Securities and Exchange Board of India (SEBI)

• Insurance Regulatory and Development Authority of India (IRDAI)

• Pension Fund Regulatory and Development Authority (PFRDA)

• Ministry of Finance and Ministry of Corporate Affairs