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Hindustan Times
01-07-2025
- Business
- Hindustan Times
FATF norms endorse India's institutional mechanisms like JAM
The Financial Action Task Force's (FATF) new guidelines on financial inclusion have extensively endorsed India's institutional mechanisms such as Jan-Dhan, Aadhaar and Mobile (JAM) Trinity, as well as digital stacks, customers due diligence, and Financial Stability and Development Council (FSDC), emphasising that financial inclusion and the fight against financial crime are mutually supportive. India's electronic know-your-customer (KYC) support via Aadhaar is a 'good' example, FATF said. (HT Archive) The new guidelines cited India's financial inclusion efforts through digital identification and biometric data registries. 'In India, a multi-pronged approach to promote financial inclusion and promote transactions through financial channels, called JAM Trinity, was developed based on three pillars: (1) access to financial services to the unbanked population, (2) biometric based identification for every citizen, and (3) the development of a digital payment ecosystem. As per the Global Findex, access to financial services increased from 35% of total population in 2011 to 53% in 2014 and to 80% in 2017,' the guidelines said. India's electronic know-your-customer (KYC) support via Aadhaar is a 'good' example of collaborative measures that lower compliance costs for regulated entities while improving the outcomes, the global body added. The FATF updated its 'Guidance on Financial Inclusion and Anti-Money Laundering and Terrorist Financing Measures' after an extensive consultation with both the public and the private sectors. The guideline document was adopted by the global financial crimes watchdog at its June 2025 plenary. Emphasising its risk-based approach as a facilitator of financial inclusion, FATF said that a country's anti-money laundering and countering the financing of terrorism (AML/CFT) legal framework should expressly allow for regulated entities to implement simplified measures where lower risks are identified, and should avoid making the framework overly prescriptive or stringent. Highlighting India's frameworks, FATF said, the country created a solid institutional framework to coordinate and support its financial inclusion strategy. 'The National Strategy for Financial Inclusion for India 2019-2024 provides (1) an analysis of the status and constraints in financial inclusion in India, (2) specific financial inclusion goals, (3) a strategy to reach the goals, and (4) mechanisms to measure progress,' it added. The strategy, prepared by the Reserve Bank of India (RBI), reflects wide-ranging consultations with relevant stakeholders, it added. Citing an example of India's 'solid institutional framework' to coordinate and support its financial inclusion strategy, FATF lauded the creation of FSDC — an apex body for inter-regulatory coordination of the financial sector, chaired by the Union finance minister. Its members include top bureaucrats and heads of financial sector regulators such as RBI and Securities and Exchange Board of India (Sebi), among others. The FATF document also highlighted ease of compliance for customers in the Indian system. '…the country's CDD regime was flexible enough to accommodate financial inclusion and that the developments in e-KYC further reduced the need for relying on SDD [Simplified customer due diligence] practices,' it added.
Time of India
30-06-2025
- Business
- Time of India
Adopt risk-based supervision, zero-trust approach to curb cyberfrauds: RBI
The Reserve Bank on Monday made a case for adopting risk-based supervision , zero-trust approaches and AI-aware defense strategies to tackle online frauds and boost cybersecurity resilience in the financial sector. The central bank flagged that phishing and social engineering attacks are evolving through generative AI-powered methods, such as deepfakes and contextual frauds. "The expanding scale of digital financial services, cloud-based infrastructure and interconnected systems across sectors has exponentially increased the cyberattack surface," said the RBI's bi-annual the Financial Stability Report (FSR). by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like The Simple Morning Habit for a Flatter Belly After 50! Lulutox Undo It further said given the systemic interconnectedness of financial entities and technology service providers, ensuring cyber resilience is critical to maintaining trust, stability and business continuity. As organisations increasingly depend on third party service providers for their business operations, vulnerabilities in the supply chain could pose systemic risk. Live Events Furthermore, the RBI said the overreliance on a few major IT and cloud service providers has created dependency and vendor lock-in problems leading to concentration risks. Vulnerability in one system can quickly propagate across networks, affecting multiple entities, the report said. "In this context, cybersecurity resilience will depend on the Security Operations Center (SOC) efficacy, risk-based supervision, zero-trust approaches and AI-aware defence strategies," it said. Graded monitoring mechanisms, the use of behavioral analytics for threat detection, hands-on training, continuous learning and simulation-based exercises such as through Continuous Assessment-Based Red Teaming (CART), scenario-based resilience drills and uniform incident reporting frameworks are vital for enhancing the resilience of the digital ecosystem, it said. The Financial Stability Report (FSR) reflects the collective assessment of the Sub-Committee of the Financial Stability and Development Council (FSDC) on the resilience of the Indian financial system and risks to financial stability. The RBI also said regulators are aligned with these efforts, focusing on digital fraud prevention, secure digital lending, and mutual fund reforms. The FSDC and its sub-committee continues to play a vital role in building a resilient and secure financial system. The report further said the rapid growth of digital transactions, though instrumental in enhancing convenience and efficiency, has been accompanied by a significant rise in financial frauds.
Economic Times
11-06-2025
- Business
- Economic Times
Financial sector regulators to work on universal KYC
Financial sector regulators, led by the RBI, are developing a universal KYC framework with the CKYCR to streamline verification processes. Nirmala Sitharaman urged regulators to ensure seamless KYC experiences for citizens and expedite refunds of unclaimed amounts through district-level camps. The FSDC also discussed strengthening cybersecurity and implementing budget announcements related to KYC simplification for NRIs, PIOs, and OCIs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: Financial sector regulators, including the Reserve Bank of India , will look at a universal know your customer (KYC) framework and develop systems with the Central Know Your Customer Registry (CKYCR) to promote the inter-usability of records and avoid multiple minister Nirmala Sitharaman in a meeting of the Financial Stability and Development Council (FSDC) in Mumbai on Tuesday urged the financial sector regulators to take proactive steps to ensure that citizens have a seamless experience with the KYC processes across the financial a statement, the finance ministry said the FSDC also considered strengthening the cyber resilience framework of the Indian financial sector through a financial sector-specific cybersecurity FSDC also discussed issues relating to formulating a strategy for implementing the past decisions and the budget announcements, which included prescribing common KYC norms, simplification and digitalisation of the KYC process, including digital onboarding for non-resident Indians (NRIs), PIOs and OCIs in the Indian securities FSDC has representation from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (Irdai), the Securities and Exchange Board of India (Sebi), the Pension Fund Regulatory and Development Authority (PFRDA) and officials from the finance and corporate affairs urged the regulators and departments to expedite the process of refund to rightful owners of unclaimed amounts by holding special district-level also emphasised that interest of common citizens be kept in mind and therefore expeditiously refund the claims of the rightful claimants, the statement unclaimed amounts comprise deposits in banks, unclaimed shares and dividends managed by IEPFA and unclaimed insurance and pension funds with Irdai and PFRDA, drive is to be conducted in coordination with RBI, Sebi, MCA, PFRDA and Irdai along with banks, pension agencies and insurance finance ministry statement noted that the FSDC also deliberated on the emerging trends from the domestic and global macro-financial situation and stressed the need to be vigilant."The council recognised the need for proactive efforts to mitigate potential risks to financial stability while adopting adequate safeguards for the financial system's resilience," it said.
Time of India
11-06-2025
- Business
- Time of India
Financial sector regulators to work on universal KYC
Financial sector regulators, led by the RBI, are developing a universal KYC framework with the CKYCR to streamline verification processes. Nirmala Sitharaman urged regulators to ensure seamless KYC experiences for citizens and expedite refunds of unclaimed amounts through district-level camps. The FSDC also discussed strengthening cybersecurity and implementing budget announcements related to KYC simplification for NRIs, PIOs, and OCIs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi: Financial sector regulators, including the Reserve Bank of India , will look at a universal know your customer (KYC) framework and develop systems with the Central Know Your Customer Registry (CKYCR) to promote the inter-usability of records and avoid multiple minister Nirmala Sitharaman in a meeting of the Financial Stability and Development Council (FSDC) in Mumbai on Tuesday urged the financial sector regulators to take proactive steps to ensure that citizens have a seamless experience with the KYC processes across the financial a statement, the finance ministry said the FSDC also considered strengthening the cyber resilience framework of the Indian financial sector through a financial sector-specific cybersecurity FSDC also discussed issues relating to formulating a strategy for implementing the past decisions and the budget announcements, which included prescribing common KYC norms, simplification and digitalisation of the KYC process, including digital onboarding for non-resident Indians (NRIs), PIOs and OCIs in the Indian securities FSDC has representation from the Reserve Bank of India (RBI), the Insurance Regulatory and Development Authority of India (Irdai), the Securities and Exchange Board of India (Sebi), the Pension Fund Regulatory and Development Authority (PFRDA) and officials from the finance and corporate affairs urged the regulators and departments to expedite the process of refund to rightful owners of unclaimed amounts by holding special district-level also emphasised that interest of common citizens be kept in mind and therefore expeditiously refund the claims of the rightful claimants, the statement unclaimed amounts comprise deposits in banks, unclaimed shares and dividends managed by IEPFA and unclaimed insurance and pension funds with Irdai and PFRDA, drive is to be conducted in coordination with RBI, Sebi, MCA, PFRDA and Irdai along with banks, pension agencies and insurance finance ministry statement noted that the FSDC also deliberated on the emerging trends from the domestic and global macro-financial situation and stressed the need to be vigilant."The council recognised the need for proactive efforts to mitigate potential risks to financial stability while adopting adequate safeguards for the financial system's resilience," it said.
Mint
11-06-2025
- Business
- Mint
Govt to launch nationwide drive to return unclaimed bank deposits, dividends and policies
New Delhi: The central government is gearing up to launch a sweeping drive across 500 districts to return unclaimed financial assets, ranging from dormant bank deposits and unpaid dividends to lapsed insurance policies and pension funds, to their rightful owners, a person familiar with the matter told Mint. The initiative was proposed by finance minister Nirmala Sitharaman during the 29th meeting of the Financial Stability and Development Council (FSDC) held in Mumbai on Tuesday. The meeting was attended by senior officials from the Reserve Bank of India (RBI), Securities and Exchange Board of India (Sebi), Ministry of Corporate Affairs (MCA), Insurance Regulatory and Development Authority of India (Irdai), and Pension Fund Regulatory and Development Authority (PFRDA). As part of the plan, regulators have agreed to hold coordinated outreach camps at district headquarters to help citizens claim these unclaimed assets, the person said, requesting anonymity. To simplify financial access, the council also decided to implement a unified Know Your Customer (KYC) framework, which is expected to be completed by the end of the current financial year (FY26). 'While all regulators will follow common KYC norms in general, individual regulators may include additional sector-specific requirements if needed. Standardised KYC will enhance ease of living,' the person said. 'The objective is to enhance ease of living for citizens and simplify financial access.' Spokespersons for the ministry of finance, RBI, Sebi, MCA, Irdai, and PFRDA did not respond to emailed queries. During Tuesday's meeting, Sitharaman called for expedited efforts to return unclaimed financial assets and pushed for streamlining the KYC process to improve user experience across the financial system. The FSDC also reviewed India's macro-financial stability and preparedness, and discussed the need to bolster cyber resilience in the financial sector. 'In light of the analysis of cybersecurity regulations, sectoral preparedness, and the recommendations of the Financial Sector Assessment Programme (FSAP) 2024-25, the FSDC considered strengthening the cyber resilience framework of the Indian financial sector through a financial sector-specific cybersecurity strategy,' the finance ministry said in a statement. The council also discussed the implementation of earlier decisions and Budget announcements, with a focus on regulatory efficiency, investor onboarding, and return of unclaimed assets.
