New Delhi [India], March 28: Reserve Bank of India (RBI) Governor Sanjay Malhotra met President Droupadi Murmu at Rashtrapati Bhavan on Friday.
“Shri Sanjay Malhotra, Governor, Reserve Bank of India, called on President Droupadi Murmu at Rashtrapati Bhavan,” read a post from the President of India’s official X handle.
Concerns Over Money Laundering & Terror Financing
Earlier, on March 26, the RBI Governor raised concerns about the increasing threats from money laundering and terror financing, stating that these activities have become more sophisticated due to technological advancements.
Speaking at the Private Sector Collaborative Forum of the Financial Action Task Force (FATF), Malhotra said:
“The threats from money laundering and terror financing to the national and global financial systems are continuously evolving and becoming more sophisticated.”
Strengthening Financial Systems
Malhotra emphasized the need to strengthen financial systems to prevent illicit activities, implementing recommendations from recent evaluations.
“We are determined to further strengthen our financial system to deter and combat illicit financial activities. We will continue striving for continuous improvement,” he added.
Call for Robust Risk Assessment Models
The RBI Governor also stressed the importance of enhancing risk assessment models while ensuring that compliance burdens remain manageable.
“Any risk-based approach is not perfect—it will have false positives and false negatives. We need to continuously refine and improve our models to make them more robust,” he stated.
Developing Tools for Early Detection
Malhotra urged financial regulators to stay ahead of criminals by understanding the latest financial trends that could be exploited. He called for the development of advanced detection tools and frameworks to identify suspicious transactions early and take pre-emptive action.
With increasing global financial threats, how do you think India should further strengthen its financial security measures? 💰🔍