GS Paper III
News Excerpt:
The government has formed an expert committee headed by Finance Secretary T V Somanathan to make its recommendations to bring out uniform Know Your Customer (KYC) norms.
About News:
- Days after the Financial Stability and Development Council (FSDC) discussed a proposal to bring out uniform Know Your Customer (KYC) norms, the government has formed an expert committee headed by Finance Secretary T V Somanathan to make its recommendations on the matter.
- The committee would invite inputs from all the members of the FSDC on KYC norms.
- The Ministry of Corporate Affairs, for instance, would share its practices with regards to the use of the permanent account number (PAN) as a common identifier for the incorporation of companies.
- In its 28th meeting held last week, the FSDC discussed issues such as prescribing uniform KYC norms and the inter-usability of KYC records across the financial sector.
- The council batted for formulating a strategy to simplify and digitise the KYC process in the financial sector.
Financial Stability and Development Council (FSDC):
- The FSDC, an apex-level body constituted by the government.
- FSDC is chaired by the Union finance minister.
- Its members:- Governor, Reserve Bank of India, Finance secretary and/or secretary, Department of Economic Affairs, secretary, Department of Financial Services, chief economic adviser, Ministry of Finance, chairman, Securities and Exchange Board of India, chairman, Insurance Regulatory and Development Authority, and chairman, Pension Fund Regulatory and Development Authority.
- The FSDC, which acts like a super regulator with heads of financial regulators as its members, deals with issues relating to financial stability, inter-regulatory coordination, and macro-prudential supervision of the economy, among other things.
