FSDC to discuss feasibility of introducing common KYC norms

Written by fe Bureau | New Delhi | Updated: Aug 7 2014, 06:16am hrs
The Financial Stability Development Council (FSDC), which meets on August 9, will discuss the feasibility of introducing common Know Your Customer (KYC) norms across the financial sector and single operating demat accounts for all financial assets, officials told FE.

Finance minister Arun Jaitley, who heads the FSDC, had proposed the introduction of uniform KYC norms and inter-usability of KYC records across the entire financial sector and introducing a single operating demat account so that financial sector consumers can access and transact all financial assets through it.

Officials said Reserve Bank of India governor Raghuram Rajan had tasked the Inter Regulatory Technical Group (IRTG) to study the feasibilty of the two proposals. The IRTG is headed by the executive director of financial stability at RBI and it discusses issues related to risks to systemic financial stability and inter-regulatory coordination.

The IRTG has been tasked with finding out how the two schemes can be implemented with the technology and resources available to the government. It will submit a preliminary report to the FSDC on Saturday, a finance ministry official told FE.

Apart from Jaitley and Rajan, the FSDC meeting will be attended by SEBI chairman UK Sinha, FMC chairman Ramesh Abhishek, IRDA chairman TS Vijayan, PFRDA interim chairman RV Verma, and finance secretary Arvind Mayaram.