Friday, May 12, 2023

Nirmala Sitharaman, the finance minister, wants a specific campaign for unclaimed bank money

Finance minister Nirmala Sitharaman seeks special drive for unclaimed bank deposits

 Delhi, India: Monday, Finance Minister Nirmala Sitharaman advised regulators to launch a special effort to facilitate the settlement of unclaimed deposits and claims in the banking, mutual fund, insurance, and shares and dividends sectors of the financial sector.

Sitharaman also said that regulators should always be on the lookout because "financial sector stability is a shared responsibility" when he presided over the 27th meeting of the Financial Stability and Development Council (FSDC). She stated that regulators must take appropriate and prompt action to strengthen financial stability and reduce any vulnerability.

Ajay Seth, secretary of the department of economic affairs, told reporters following the FSDC meeting, "It was also noted that as the Union Budget has announced unclaimed deposits, shares, and dividends, which are lying in the pool, a drive should be taken by the concerned regulator, especially where nominee details are available, though nominees may not be aware of them, in a time-bound manner." He added that a procedure must be established when nominee details are unavailable.

In her Financial plan discourse for 2023-24, Sitharaman had said a coordinated IT entrance would be set up for financial backers to recover unclaimed offers and neglected profits from the Financial backer Training and Assurance Asset Authority effortlessly.

According to Seth, the council also discussed the need to streamline and simplify the KYC (know your customer) procedure in order to meet the requirements of Digital India, which was one of the budget announcements.

He stated that despite the daunting global financial situation, the Indian economy and, particularly, the Indian financial sector are well-regulated and protected. However, of course, we must exercise caution and remain alert,” Seth stated, pointing out that India does not experience any spillover effects from the global financial system.

To further reduce the burden of compliance and ensure a regulatory environment that is streamlined and effective, the FM stated that regulators should take a focused approach. An official statement states that the FM and each regulator will evaluate the progress made in this regard in June 2023.

She said that regulators need to be proactive and make sure that information technology systems are prepared for cyber security in order to reduce the risk of cyber attacks, protect sensitive financial data, and keep the integrity of the system as a whole, keeping the Indian financial ecosystem stable and resilient.

The gathering likewise examined the activity taken report on Spending plan declarations made beginning around 2019. The statement says that regulators should take a focused approach to putting into action the announcements made in Budget 2023-23, for which timelines were also decided.

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