Economy - Reports
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday affirmed the central bank’s perspective of fintech as a ‘valuable partner’ in shaping the future financial system, underscoring the sector’s role in expanding financial inclusion, elevating customer satisfaction, and streamlining credit delivery processes. Malhotra indicated that RBI’s approach to fintech has been predicated on “continuous, open and constructive engagement” with start-ups, fintech enterprises, and other stakeholders. He noted that the Reserve Bank Innovation Hub, the RBI’s regulatory sandbox, and its ongoing communication with the fintech industry reflect the regulator’s belief that “better policy emerges from continuous, open and constructive engagement.”
The proliferation of fintech has “fundamentally reshaped the architecture of Indian finance” over the last ten years, extending banking “from the branch to the hand of every citizen,” stated Malhotra. He pointed to UPI, Aadhaar-enabled payment systems, and the Jan Dhan ecosystem as illustrations of how “today, a shopkeeper in a small town, a farmer in a remote village, a young professional in a metro city, all of them transact, save, and borrow through the same seamless digital rails.” The governor affirmed that financial inclusion is a daily reality for hundreds of millions of Indians and also a governmental objective.
Malhotra asserts that fintech has enhanced the efficacy of the financial system, rendering it ‘faster and affordable’ for India’s diverse population to access formal financing. He underscored progress in financial infrastructure and client experience, including reduced account opening and payment settlement durations, lower transaction expenses, enhanced fraud prevention through AI-driven analytics, and real-time oversight.