Finance Ministry, Panel Discuss Easing KYC Norms, Curbing Unauthorised Lending Apps
The meeting comes at a time when the RBI has cracked down on Paytm Payments Bank over alleged lapses in customer verification.
A strategy for a simpler Know-Your-Customer process with uniform norms, curbing the spread of unauthorised lending through online apps and boosting fundraising by social enterprises through social stock exchanges. These were among the topics discussed by senior officials of the Finance Ministry and the Financial Stability and Development Council.
At its 28th meeting, chaired by Union Finance Minister Nirmala Sitharaman, the FSDC met in the national capital on Wednesday. It counts RBI Governor Shaktikanta Das; chairpersons of regulatory bodies such as SEBI, IRDA, PFRDA, and IBBI; and senior officials of the Finance Ministry as members.
The council also discussed strategies to implement its decisions and the Union budget announcements, according to a statement.
These discussions include:
Prescribing uniform KYC norms, inter-usability of KYC records across the financial sector, and simplification of the KYC process.
Kickstarting fundraising by social enterprises through social stock exchanges.
Arrest the harmful effects of unauthorised lending through online apps and take measures to curb their further spread.
The council also urged its members to take proactive action in detecting emerging financial stability risks and taking the necessary measures to mitigate them. To this effect, the members have also decided to strengthen inter-regulatory coordination.
The meeting comes at a time when the RBI has cracked down on Paytm Payments Bank over alleged lapses in customer verification.
“The FSDC deliberated on issues related to macro-financial stability and India’s preparedness to deal with them,” the statement said. “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.”
