During the inaugural ceremony of the Private Sector Collaborative Forum 2025 (PSCF 2025) in Mumbai, Reserve Bank of India (RBI) Governor Sanjay Malhotra emphasized the crucial role of the private sector in maintaining the security of the financial system. He stated that the private sector acts as the first line of defense against illicit financial activities, including money laundering and terrorist financing. Malhotra also highlighted the need for a balanced approach to regulations and the Know Your Customer (KYC) process, cautioning that overly stringent measures could hinder investments. His remarks were made in the context of ongoing efforts to enhance financial system safety while ensuring that regulatory measures do not stifle economic growth.