The Reserve Bank of India (RBI) Governor Sanjay Malhotra has praised India’s fintech ecosystem for its vibrancy and scale, with the country being home to close to 10,000 entities in the sector. However, while acknowledging the sector’s growth, he also highlighted key challenges that need to be addressed, including the rising threat of digital fraud. In a clear message to fintech firms, he urged them to prioritize user accessibility and security.
According to the Governor, a major focus for the industry should be on developing products and services that are both easy to use and accessible to all citizens. This emphasis on accessibility and ease of use is critical for driving broader financial inclusion, ensuring that the benefits of technology reach every segment of the population. He noted that AI has a massive potential to enhance the next generation of Digital Public Infrastructure. The RBI is also conceptualizing a Unified Lending Interface (ULI) aimed at leveraging data for lenders to build alternative credit models. This initiative is expected to streamline the lending process, especially for small businesses and rural borrowers who often face challenges in securing credit through traditional channels.
However, the rapid growth in digital financial services has also brought with it an increase in digital frauds. The RBI has flagged this as a matter of concern and is taking action to address it. The central bank is working to operationalize a Digital Payments Intelligence Platform (DPIP) that will use AI to flag risky transactions and help curb fraud.
The Governor’s message underscores a balanced vision for India’s financial future: one that embraces innovation while also ensuring stability and security for all users. The focus is on building a robust digital ecosystem that is not only technologically advanced but also secure and inclusive, allowing the country’s vibrant fintech sector to continue its growth in a responsible and sustainable manner.
