Mumbai, April 25 (IANS) Finance Minister Nirmala Sitharaman on Saturday called for a major overhaul of know-your-customer (KYC) processes, urging Securities and Exchange Board of India (SEBI) to lead efforts toward simplifying and standardising verification systems across the financial ecosystem. Addressing SEBI’s 38th foundation day event here, FM Sitharaman stressed the need for a seamless, secure and portable KYC framework that works across platforms and institutions.“The current system places an unnecessary burden on citizens, who are often required to repeat the same verification procedures multiple times,” Finance Minister Sitharaman said.Emphasising urgency, the minister called for close coordination between SEBI, the Financial Stability and Development Council (FSDC), and other regulators to implement a unified architecture.“No citizen should have to repeat the same verification journey across multiple platforms,” the finance minister said.The finance minister also highlighted the importance of shifting the regulatory approach in line with rapidly evolving financial markets.

“Regulation must move from reactive to anticipatory particularly in the face of emerging risks such as artificial intelligence-driven market abuse, cross-border financial fraud, and growing cybersecurity threats,” FM Sitharaman stated.Her remarks underline the government’s push to ensure that oversight mechanisms remain ahead of technological disruptions.FM Sitharaman further emphasised that the next phase of regulatory development should move away from overly prescriptive rules toward more principles-based frameworks.The minister advocated for greater reliance on structured public consultations to create balanced and adaptable regulations that can foster innovation while safeguarding investor interests.Meanwhile, earlier this month, the finance minister said that the country’s strong fiscal position and robust foreign exchange reserves provide the Reserve Bank of India with more policy flexibility."India has fiscal space with room to maintain the government’s capex programme, room for the RBI to cut rates and room to offer targeted support to affected sectors. This is the dividend of a decade of fiscal discipline that is paying dividends," FM Sitharaman said while addressing the golden jubilee celebrations of the National Institute of Public Finance and Policy on April 6.

/IANS