After discussions within the Financial Stability and Development Council (FSDC) regarding the need for uniform Know Your Customer (KYC) norms, the government has taken action by establishing an expert committee. Headed by Finance Secretary T V Somanathan, this committee aims to streamline and finalize uniform KYC norms across various sectors.
Committee Formation and Composition
- The expert committee, chaired by Finance Secretary T V Somanathan, has been constituted to address the issue of uniform KYC norms.
- Membership includes representatives from different government departments and FSDC members.
Objectives of the Committee
- To gather inputs from all FSDC members regarding KYC norms.
- To explore practices of various ministries and regulators, such as the Ministry of Corporate Affairs, in implementing KYC measures, including the utilization of PAN as a common identifier.
Focus Areas of Discussion Within FSDC
- The FSDC discussed the importance of prescribing uniform KYC norms and promoting inter-usability of KYC records across the financial sector.
- Strategies for simplifying and digitizing the KYC process in alignment with the goals of Digital India were emphasized.
Role and Functioning of FSDC
- The apex-level body, chaired by the Union finance minister, comprises heads of financial regulators.
- FSDC addresses issues related to financial stability, inter-regulatory coordination, and macro-prudential supervision of the economy.