The meeting was under the aegis of the Financial Stability and Development Council (FSDC) – a forum where financial sector regulators RBI, Sebi, Irdai, PFRDA and other entities like the International Financial Services Authority and finance ministry officials get together.
The Centre has pursued a common KYC that would work across services since 2014. From 2017 onwards, RBI-regulated entities have been uploading KYC data pertaining to individual accounts onto a centralised KYC register. This CKYC registry, limited to individuals earlier, was extended to legal entities from 2020.
The CKYC registry was created to reduce the requirement for submitting documents for verification when starting a new financial relationship with a fresh financial services company. However, this requires the creation of IT infrastructure and amendments to regulations. A centralised registration is already in force within the mutual fund industry. Anyone who has completed the formalities once can repeat transactions with other fund houses by submitting the registry number.
The FSDC deliberated on the early warning indicators for the economy and the preparedness to deal with them, improving the efficiency of the existing financial/credit information systems, issues of governance & management in systemically important financial institutions, including financial market infrastructures, strengthening cyber security framework in the financial sector, and the account aggregator framework.