Collaborative Compliance: Enhancing Digital Financial Safety

Reserve Bank Governor Sanjay Malhotra emphasizes the importance of a collaborative approach between regulators and financial institutions to address digital fraud. He advocates for moving beyond a tick-box compliance culture towards a partnership model that prioritizes consumer protection and systemic stability in the digital era.

In a call to action, Reserve Bank Governor Sanjay Malhotra urged financial institutions to prioritize the spirit of regulations over mere compliance checklists. Speaking at the Third Annual Global Conference of the College of Supervisors, he stressed the need for a collaborative stance on combating digital fraud.

Governor Malhotra highlighted the dual nature of digitalization; while it enhances financial inclusion and service personalization, it also brings risks like opaque pricing and weak disclosures. He underlined the shared objectives of regulators and institutions to ensure stability and integrity within the financial system.

The governor urged banks and regulated entities to understand regulatory expectations and collaborate to develop analytical tools for detecting suspicious transactions. By fostering a culture of proactive regulation, Malhotra seeks to ensure responsible innovation while safeguarding consumer interests.

(With inputs from agencies.)