This follows the 29th Financial Stability and Development Council (FSDC) meeting, which took place in Mumbai on June 10. During the FSDC meeting, Sitharaman advocated for a more citizen-centric financial system.
The finance minister underscored two critical priorities—accelerating the processing of refunds for unclaimed financial assets and streamlining Know Your Customer (KYC) regulations.
She urged financial regulators and departments to initiate joint special drives at the district level aimed at identifying and returning unclaimed assets to their rightful owners. These assets encompass unclaimed bank deposits, shares, dividends, insurance payouts, and pension funds managed by entities such as the RBI, SEBI, IRDAI, PFRDA, and public sector banks.
“The interests of ordinary citizens should be paramount. Refund claims need to be handled swiftly and efficiently,” Sitharaman stated.
In another development, the Reserve Bank of India (RBI) has updated its Know Your Customer (KYC) policies to make the process easier for low-risk individuals. The revised guidelines, released on June 12, 2025, focus on enhancing customer service while ensuring compliance.
The changes are part of the Reserve Bank of India (KYC) (Amendment) Directions, 2025, and are effective immediately.
According to the new provisions, regulated entities (REs) must permit all transactions for low-risk individual customers, even if their KYC is not yet completed. These customers have until one year after the due date or by June 30, 2026, whichever comes later, to update their KYC. Their accounts will continue to be monitored regularly.
