New Delhi: Economic Affairs Secretary Ajay Seth told reporters after the meeting of the Financial Stability and Development Council (FSDC) that maintaining financial stability and “being on our toes” in the face of challenges from the global economy is the priority of all financial sector regulators in India. Shared responsibility. ) monday.
Finance Minister Nirmala Sitharaman chaired the 27th meeting of the FSDC in the capital on Monday. This was the first meeting of the Council after the announcement of the Union Budget 2023-24 on 1 February 2023.
The FSDC is a high-level council consisting of senior-most officials from the Ministries of Finance and Corporate Affairs, as well as heads of all financial sector regulators.
According to Seth, the council discussed a number of topics, including easing KYC norms for customers, how to give investors quick access to their unclaimed dividends, deposits and shares, and how to put in place an early warning system. Reduce financial stress.
“The council discussed a range of issues, starting with the issue of financial stability, noting that tough challenges are coming from the global economy and from a global perspective,” Seth said.
“It was noted that maintaining financial stability, being on our toes to maintain stability of our economy is a shared responsibility and all members will work towards this,” he said.
He also said that the banking crisis had no effect America Or Europe Which will negatively affect India or its financial system.
The high-level meeting was attended by Ministers of State for Finance Pankaj Choudhary and Bhagwat Kishanrao Karad, Reserve Bank of India Governor Shaktikanta Das, all Secretaries of the Ministries of Finance and Corporate Affairs and Chief Economic Advisor V. Ananth Nageswaran. ,
The FSDC also includes heads of all other financial regulators such as the Securities and Exchange Board of India (SEBI), Insurance Regulatory and Development Authority of India (IRDAI), Pension Fund Regulatory and Development Authority (PFRDA), Insolvency and Bankruptcy Board of India. (IBBI), and the International Financial Services Centers Authority (IFSCA), all of whom were in attendance.
cyber security on the agenda
“The council discussed the issue of cyber security at a time when the economy and financial sector are becoming more digital,” Seth said. The Council, he said, noted that “cyber security of all regulated entities, especially large, systemically important regulated financial institutions, as well as financial market infrastructure, requires a high level of preparedness”.
Seth highlighted the fact that, in many cases, deposits, dividends and stocks are left unclaimed by investors or their nominees, due to lack of knowledge about the existence of these assets.
“The council decided that the concerned regulators should conduct a drive to reach out to them in a time-bound manner, where the contact details of the nominees are,” Seth said. Where the details of the nominee are not there, the process will have to be started.
The Economic Affairs Secretary further said that an expert committee had submitted a “comprehensive” report on how KYC norms could be eased for customers. He said the council discussed the report and what additional steps were required.
“The council also discussed issues related to early warning indicators for the economy,” Seth said. “These are a set of indicators that allow financial stress to be noticed well in time so that corrective measures can be taken.”
He said that the government and regulators already have a system in place that receives information from financial markets, global markets and the real economy.
(Editing by Nida Fatima Siddiqui)
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