Union Finance Minister Nirmala Sitharaman on Friday urged financial sector regulators to expedite the return of unclaimed assets, including bank deposits, shares, dividends, insurance policies and pension funds, to their rightful owners.
The issue was discussed at a meeting of the Financial Stability and Development Council (FSDC), the country’s apex body for coordination among financial regulators, chaired by Sitharaman. The meeting also focused on simplifying Know Your Customer (KYC) procedures, strengthening cybersecurity and safeguarding India’s financial system amid growing global uncertainties.
According to a finance ministry statement, the Council reviewed the Financial Sector Cyber Security Strategy (FSCSS), which aims to establish common cybersecurity standards across the financial sector. The strategy also seeks to strengthen risk management against emerging technologies, including artificial intelligence (AI), cloud computing and quantum technologies, while improving the security of third-party service providers.
The Council also discussed simplifying and digitizing KYC procedures, particularly for non-resident Indians (NRIs) and foreign portfolio investors (FPIs), to make financial services more accessible and efficient.
Other key areas included expanding digital public infrastructure, strengthening the account aggregator framework and the Unified Lending Interface (ULI), particularly to improve credit access for micro, small and medium enterprises (MSMEs). Members also discussed reducing financial intermediation costs and rationalizing credit guarantee schemes.
The FSDC reviewed measures to strengthen domestic investment and improve the flow of resources into the economy, including through the Gujarat International Finance Tec-City International Financial Services Centre (GIFT-IFSC).
Highlighting the risks posed by geopolitical uncertainties, rising global bond yields and rapid developments in AI, the Council stressed the need for proactive measures to maintain financial stability. Sitharaman also called for more frequent FSDC meetings according to a predefined schedule.
The meeting reviewed India’s preparedness to protect critical information infrastructure and strengthen cybersecurity systems, including those of regional rural banks.
Senior officials attending the meeting included Reserve Bank of India Governor Sanjay Malhotra, Securities and Exchange Board of India Chairman Tuhin Kanta Pandey and senior representatives from the finance and electronics and information technology ministries.
