FSDC initiates measures to simplify KYC process and combat unauthorised lending via online apps

"The FSDC discussed various issues related to formulation of strategy for implementing the decisions of the FSDC and the Union Budget announcements. These, inter alia, included -- prescribing uniform KYC norms, inter-usability of KYC records across the financial sector, and simplification and digitalisation of the KYC process; kickstarting fund-raising by social enterprises through social stock exchanges and to arrest the harmful effects of unauthorised lending through online apps and measures to curb their further spread," a finance ministry statement said.

The government shared that the council "inter alia, deliberated on issues related to macro financial stability and India’s preparedness to deal with them. 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."

Understanding the dynamic nature of the financial sector and the risks it is prone to, the council "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 statement added.

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 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 statement added.

The Financial Stability and Development Council (FSDC) meeting was attended by Union Minister of State for Finance Bhagwat Kishanrao Karad, Shaktikanta Das, Governor, Reserve Bank of India (RBI), T.V. Somanathan, Finance Secretary and Secretary, Department of Expenditure, Ministry of Finance (MoF), Ajay Seth, Secretary, Department of Economic Affairs, Vivek Joshi, Secretary, Department of Financial Services, Sanjay Malhotra, Secretary, Department of Revenue, Manoj Govil, Secretary, Ministry of Corporate Affairs (MCA), S. Krishnan, Secretary, Ministry of Electronics and Information Technology, V. Anantha Nageswaran, Chief Economic Adviser, Madhabi Puri Buch, Chairperson, Securities and Exchange Board of India, Debasish Panda, Chairperson, Insurance Regulatory and Development Authority of India, Deepak Mohanty, Chairperson, Pension Fund Regulatory and Development Authority, Ravi Mital, Chairperson, Insolvency and Bankruptcy Board of India, K. Rajaraman, Chairperson, International Financial Services Centres Authority, and the Secretary of the FSDC.