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In order to further develop the financial sector, Union Finance Minister Nirmala Sitharaman has said that regulators should maintain a constant vigil as ensuring ‘financial sector stability is a shared responsibility’ of the regulators. She said regulators must take appropriate and timely action to mitigate any vulnerability and strengthen financial stability.

Finance Minister further noted that regulators should adopt a focused approach to reduce the compliance burden further and ensure a streamlined and efficient regulatory environment. The progress achieved in this regard shall be reviewed by the Union Finance Minister with each regulator in June 2023.

While continuing her suggestion list, Sitharaman said that the regulators need to be proactive and ensure cyber-security preparedness of the information technology systems to reduce the risk of cyber-attacks, protect sensitive financial data, and maintain overall system integrity, thus safeguarding the stability and resilience of the Indian financial ecosystem. Besides, regulators should conduct a special drive to facilitate the settlement of unclaimed deposits and claims in the financial sector across all segments, such as banking deposits, shares and dividends, mutual funds, insurance, etc.