During the 38th Foundation Day event of the Securities and Exchange Board of India (Sebi) in Mumbai, Finance Minister Nirmala Sitharaman called for a unified know-your-customer (KYC) framework across the financial sector. This initiative aims to eliminate the need for users to undergo repeated verification processes when accessing multiple financial products. Sitharaman emphasized that the current fragmented KYC system creates unnecessary friction for users and called for urgent reforms through digitization and the establishment of common standards among regulators.

She urged Sebi to take the lead in this effort, leveraging its scale and digital infrastructure. Furthermore, Sitharaman highlighted the need for a shift from reactive oversight to anticipatory regulation, particularly in light of emerging risks such as artificial intelligence-driven market abuse and cybersecurity threats. She warned that a significant cyberattack on financial infrastructure could have severe systemic consequences, potentially disrupting markets and eroding public confidence. To counter these threats, she called for continued investments in cybersecurity defenses and public awareness campaigns to combat digital fraud.