Government & financial regulators discuss uniform KYC norms – Times of India

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NEW DELHI: Finance minister Nirmala Sitharaman on Wednesday met financial sector regulators where a key item on the agenda was uniform KYC norms, an issue which has remained under discussion for long but has not been implemented.
The idea is to implement a seamless KYC system, like the mutual fund industry where repeated verification is not required, unlike the banks or insurance companies.The plan is to use the KYC across various segments. Govt and regulators also discussed simplification and digitalisation of the KYC process, a statement issued after a meeting of the Financial Stability and Development Council said.

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In addition, steps to check unauthorised lending through online apps was also discussed, something that RBI and govt are seeking to crack down on. While the regulator has put in place norms after complaints of exorbitant rates and harassment of borrowers emerged. Besides, unregulated entities, some from China, had entered the space, some of which are under investigation by agencies such as the ED.
In Dec, govt had informed Parliament that between April 2021 and July 2022, Google has suspended or removed over 2,500 fraudulent loan apps from its platform. Some have, however, re-emerged through other modes.
The FSDC also discussed ways to kickstart fund-raising by social enterprises through social stock exchanges, an avenue that govt is keen to push to help fund ventures that may not be completely business oriented. As is the norm, the overall economic situation was discussed in detail by the panel which is meant to boost coordination between regulators and govt.
“FSDC considered the domestic and global macro-financial situation and emphasised that the members need to maintain constant vigilance and continue proactive efforts towards detecting emerging financial stability risks and taking measures to maintain the sector’s resilience. FSDC members also decided to strengthen inter-regulatory coordination,” the finance ministry said in a statement.



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