By A Staff Reporter
Mumbai, Maharashtra | Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday addressed the inaugural ceremony of the Private Sector Collaborative Forum 2025 (PSCF 2025), cautioning against excessive regulatory burdens on financial institutions. While underscoring the importance of safeguarding the financial system from money laundering and terrorist financing, he stressed that regulatory measures should not stifle legitimate economic activities.
Malhotra highlighted the complexity of financial regulations, stating, "Multiple laws and regulations, each with their own level of granularity, cast a very high level of burden on the regulated financial sector providers." He urged policymakers to strike a balance between security and economic growth to ensure financial sector stability without discouraging investment.
His remarks come at a time when the financial sector is grappling with evolving global compliance standards and increasing scrutiny. Industry experts at the event echoed his concerns, emphasizing the need for regulatory simplification to foster innovation and ease of doing business.
The PSCF 2025, a key industry forum, serves as a platform for private sector stakeholders to collaborate on the financial policy discussions and innovation. Malhotra’s address set the tone for discussions on regulatory reform and economic resilience in the Indian financial landscape.
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