FM flags threats to financial system from crypto, tax havens

Source: The post is based on the article “FM flags threats to financial system from crypto, tax havens” published in The Hindu on 6th September 2023

What is the News?

The Finance Minister has addressed the delegates at the Global Fintech Fest (GFF) 2023 being held in Mumbai.

What are the key highlights from the Finance Minister’s address at the Global Fintech Fest (GFF) 2023?

Source: The Hindu

Global Financial Threats: Cryptocurrency, drug mafias, tax havens, and cyber threats are significant global financial threats.Collaboration is needed to address these challenges effectively.

Cryptocurrencies offer opportunities but they also pose threats.Hence, efforts are needed to regulate and address issues related to crypto assets.

Fintech Industry: Fintech industry in promoting financial inclusion and influencing India’s financial landscape.Fintechs have played a substantial role in lending and reaching out to new customers.

– The Finance Minister urged fintech companies to invest heavily in cybersecurity measures, including advanced encryption, to protect user data and financial transactions. Security is crucial for building trust in the financial ecosystem.

Cross-Border Payments: India’s priority, under its G20 presidency, includes enhancing cross-border payment arrangements, especially considering the volume of remittances to the country.

Unclaimed Deposits: According to RBI, balances in savings or current accounts which are not operated for ten years, or term deposits not claimed within ten years from the date of maturity are classified as unclaimed deposits.

– Banking system alone is estimated to hold over Rs 35,000 crore in unclaimed deposits.

– To facilitate the recovery of these unclaimed funds, the Reserve Bank of India (RBI) had recently launched UDGAM (Unclaimed Deposits – Gateway to Access information) central web portal.