Finance Minister Nirmala Sitharaman chaired the 30th FSDC meeting in New Delhi to review financial stability, cybersecurity, fintech innovation, investment flows and the recovery of unclaimed financial assets.
Union Finance and Corporate Affairs Minister Nirmala Sitharaman chaired the 30th meeting of the Financial Stability and Development Council (FSDC) in New Delhi on Friday. The meeting focused on India’s financial stability, cybersecurity preparedness, regulatory reforms and emerging risks associated with global economic and geopolitical developments.
According to a Ministry of Finance press release, the Council also discussed fintech innovation, tokenisation of financial and real-world assets, measures to improve investment flows and faster refunds of unclaimed financial assets to their rightful owners.
During the meeting, Council members assessed domestic and international macro-financial developments and discussed potential challenges facing India’s financial system.
The discussions highlighted geopolitical uncertainty, the rapid expansion of artificial intelligence (AI) and rising global bond yields as developments requiring continued monitoring. Members emphasised the need for proactive risk management and effective safeguards to maintain the resilience of the country’s financial sector.
The Council also examined opportunities to modernise financial services through regulatory improvements and digital technologies. Members discussed encouraging fintech innovation and exploring the use of tokenisation for financial instruments and other real-world assets.
Additionally, the FSDC stressed the importance of stronger coordination among financial sector regulators to support sustainable development and improve the functioning of the financial system.
Cybersecurity preparedness emerged as a key area of discussion at the meeting. The Council took note of the Financial Sector Cyber Security Strategy (FSCSS), developed by an Inter-Ministerial Group involving financial regulators and cybersecurity agencies.
The initiative was coordinated with the Department of Economic Affairs (DEA), Department of Financial Services (DFS) and Ministry of Electronics and Information Technology (MeitY).
Implementation of the strategy is expected to strengthen cybersecurity across India’s financial sector. Discussions also covered protecting Critical Information Infrastructure and improving the resilience of systems supporting essential financial services.
The Council reviewed preparedness measures for Regional Rural Banks (RRBs), highlighting the need to improve their ability to address cybersecurity threats and maintain secure banking operations.
The FSDC examined measures to implement previous decisions and Budget announcements aimed at strengthening India’s investment environment and improving the flow of financial resources.
Discussions included opportunities to attract investment through the Gujarat International Finance Tec-City International Financial Services Centre (GIFT-IFSC).
Members also considered simplifying and digitising Know Your Customer (KYC) procedures and digital onboarding for Non-Resident Indians (NRIs) and Foreign Portfolio Investors (FPIs). These measures aim to improve accessibility and efficiency in financial services.
The Council further discussed expanding Digital Public Infrastructure (DPI), particularly the Account Aggregator framework and Unified Lending Interface (ULI). These initiatives were considered in the context of improving access to financial services, especially for micro, small and medium enterprises (MSMEs).
Other priorities included lowering financial intermediation costs, improving regulatory responsiveness and rationalising credit guarantee schemes.
Finance Minister Sitharaman urged regulators and other stakeholders to accelerate the process of returning unclaimed financial assets to their rightful owners.
These assets include bank deposits, dividends, shares, post office accounts, insurance proceeds and pension funds. Unclaimed funds can remain with financial institutions when account holders or their legal beneficiaries do not claim them.
The Council reviewed efforts under the “Your Money, Your Right” campaign, which seeks to help citizens recover unclaimed assets through district-level initiatives.
Sitharaman called on ministries, regulators and other stakeholders to strengthen these efforts and ensure that eligible claimants receive their money without unnecessary delays.
Considering increasing geopolitical challenges and uncertainty in the global economy, Sitharaman emphasised the importance of holding FSDC meetings more frequently according to a predefined schedule.
Regular meetings could help authorities assess emerging financial risks, coordinate policy responses and address potential vulnerabilities in a timely manner.
The Council also reviewed the work of its Sub-Committee, chaired by the Reserve Bank of India (RBI) Governor. Members took note of actions undertaken to implement pending decisions from earlier FSDC meetings.
Several senior government and financial sector officials participated in the meeting, including RBI Governor Sanjay Malhotra.
Other attendees included Anuradha Thakur, Secretary of the Department of Economic Affairs; Sanjay Lohiya, Secretary of the Department of Financial Services; Arvind Shrivastava, Secretary of the Department of Revenue; S. Krishnan, Secretary of MeitY; and Dr. Pallavi Jain Govil, Secretary of the Ministry of Corporate Affairs, along with other officials.
Their participation reflected the coordinated approach adopted by the government and financial regulators to address emerging challenges and strengthen the financial ecosystem.
Conclusion
The 30th FSDC meeting highlighted India’s focus on financial stability, cybersecurity, digital innovation and regulatory coordination amid global uncertainty. The Council’s discussions on fintech, investment reforms and unclaimed financial assets underline the importance of a secure, accessible and resilient financial system. Sitharaman’s call for more frequent meetings also emphasised the need for continued coordination to respond effectively to emerging risks.