India’s financial system has undergone a major shift with the rapid growth of fintech, bringing banking and other financial services closer to citizens, Reserve Bank of India Governor Sanjay Malhotra said at the Global FinTech Fest 2026.
Malhotra said fintech has become an important link between India’s diverse population and the formal financial system. It has made transactions, savings and borrowing more accessible and affordable. “Over the past decade, fintech has fundamentally reshaped the architecture of Indian finance. It has taken banking from the branch to the hand of every citizen,” Malhotra said.
UPI and Aadhaar support financial inclusion
The RBI governor highlighted India’s digital financial infrastructure as a key factor behind this change. UPI, Aadhaar-enabled payment systems and the Jan Dhan ecosystem have helped make financial inclusion part of everyday life for millions of Indians.
The impact is being seen across different regions and income groups. Small businesses, farmers and urban professionals are increasingly using digital platforms for transactions, savings and financial services.
Malhotra also highlighted fintech’s role in meeting the credit needs of micro, small and medium enterprises. Cash flow-based lending, Account Aggregators and the Unified Lending Interface are helping lenders evaluate businesses that traditional underwriting systems often struggled to serve.
According to Malhotra, these technologies are helping formal and collateral-light credit reach small businesses and entrepreneurs, supporting jobs and livelihoods.
RBI stresses innovation with safeguards
While backing fintech innovation, Malhotra stressed that growth must be supported by trust, safety and consumer protection.
He pointed to the RBI’s regulatory sandbox, Reserve Bank Innovation Hub and engagement with startups as efforts aimed at promoting responsible innovation. The central bank has also encouraged self-regulation and supported the development of digital public infrastructure.
Malhotra said the RBI will continue working with the fintech sector to develop a financial system that is safer, trustworthy, inclusive, fair and efficient.
His comments come as India’s fintech ecosystem enters a new phase, with digital infrastructure becoming an increasingly important part of how consumers and businesses access financial services.
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