This development follows the 29th Financial Stability and Development Council (FSDC) meeting held in Mumbai on June 10. At the FSDC meeting, Sitharaman pushed for a more citizen-friendly financial system.
The finance minister highlighted two urgent priorities—faster processing of refunds for unclaimed financial assets and simplification of Know Your Customer (KYC) norms.
She called on financial regulators and departments to conduct joint special drives at the district level to identify and return unclaimed assets to rightful owners. These assets include unclaimed bank deposits, shares, dividends, insurance proceeds, and pension funds held by entities like the RBI, SEBI, IRDAI, PFRDA, and public sector banks.
“The interest of common citizens must be at the core. Refund claims must be processed expeditiously and seamlessly,” Sitharaman said.
In a separate development, the Reserve Bank of India (RBI) has revised its Know Your Customer (KYC) norms to simplify the process for low-risk individuals. The updated rules, issued on June 12, 2025, aim to improve customer service while ensuring compliance.
The amendments come under the Reserve Bank of India (KYC) (Amendment) Directions, 2025 and are effective immediately.
As per the changes, regulated entities (REs) must allow all transactions for low-risk individual customers, even if their KYC is pending. These customers now have time to update their KYC either within one year of the due date or by June 30, 2026, whichever is later. Their accounts will continue to be monitored regularly.
