Finance Minister Sitharaman Warns of AI Deepfakes While Promoting India's FinTech Security Innovations

Finance Minister Nirmala Sitharaman revealed on Tuesday that she has personally encountered numerous deepfake videos of herself circulating online, which have been manipulated to mislead citizens and distort facts. This concerning disclosure underscores the urgent need to strengthen digital defenses.

Speaking at the 6th edition of the Global FinTech Fest 2025 in Mumbai, the Finance Minister highlighted that modern fraud has evolved beyond traditional cybersecurity breaches to what she called "hacking trust." She warned that "criminals are utilizing AI to mimic voices, clone identities, and create convincingly lifelike videos capable of manipulating people."

Addressing the growing concerns of impersonation and fraudulent representation targeting investors, Sitharaman commended initiatives by SEBI and NPCI which have launched dedicated UPI handles for SEBI-registered investor-facing intermediaries with category identifiers such as .brk for brokers and .mf for mutual funds.

The Finance Minister noted that major brokers representing over 90 percent of investors, along with all mutual funds, have already implemented this system. "These verified handles establish secure payment channels in the securities market while maintaining existing payment options, enhancing safety without disrupting user preferences," she explained.

Additionally, SEBI has introduced "SEBI Check," a verification tool allowing investors to authenticate UPI IDs and bank account details of registered intermediaries across payment systems including UPI, NEFT, RTGS, and IMPS before initiating transactions. This service is accessible via web portal and the Saarthi application.

The framework incorporates responsible technology use through privacy-preserving verification, secure processing, comprehensive audit trails, and continuous improvement informed by user reports and flagged discrepancies.

Sitharaman emphasized that this moment provides an opportunity to contemplate the financial future we aim to build. "Fintechs must focus on fundamentals including revenue growth, innovative products, profitability, and robust risk and compliance capabilities," she stated, adding that "responsible regulation isn't an impediment to progress but rather a safety mechanism for secure advancement."

The Finance Minister highlighted the government's role in fostering FinTech growth and innovation through balanced policy support, digital public infrastructure development, and forward-looking regulation.

"Digital initiatives like Aadhaar, UPI, Account Aggregator Framework, and Digi Locker have fundamentally transformed public finance management for citizen benefit. India has also firmly established itself in the global AI landscape with the launch of the $1.3 billion IndiaAI Mission," she remarked.

India contributes significantly to global AI talent, representing 16 percent of the worldwide pool and ranking among the top three talent markets. Indians are the second largest contributors to public generative AI GitHub projects, and AI-enabled Global Capability Centers are projected to account for 30-35 percent of India's AI services market revenue by 2028.

Sitharaman expressed confidence that "India possesses the potential to become the global hub for developing various AI products and services." She further noted that the country can create AI solutions suitable for diverse global use cases and serve as a laboratory for developing and testing AI concepts.

The Minister concluded by highlighting that India offers unparalleled opportunities for Fintech Global Capability Centers to scale innovation, supported by a deep talent pool and favorable government policies.