RBI sees fintech as a ?valuable partner? in creating the financial system of the future, says central bank guv

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday said that the central bank has continuously seen fintech as a ?valuable partner? in creating the financial system of the future, emphasising the industry?s contribution to increasing financial inclusion, enhancing customer satisfaction, and facilitating quicker and more effective credit delivery. Malhotra stated that RBI?s strategy to fintech has been based on ?continuous, open and constructive engagement? with start-ups, fintech enterprises, and other stakeholders. According to him, the Reserve Bank Innovation Hub, the RBI?s regulatory sandbox, and its ongoing communication with the fintech industry all demonstrate the regulator?s conviction that ?better policy emerges from continuous, open and constructive engagement.?

Fintech has ?fundamentally reshaped the architecture of Indian finance? over the last ten years, bringing banking ?from the branch to the hand of every citizen,? said Malhotra. He cited UPI, Aadhaar-enabled payment systems, and the Jan Dhan ecosystem as examples 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.? According to the governor, financial inclusion is a daily reality for hundreds of millions of Indians as well as a governmental goal.

Malhotra claims that fintech has improved the efficiency of the financial system and made it ?faster and affordable? for India?s diverse population to access formal financing. He emphasised advancements in the financial infrastructure and client experience, such as shorter account opening and payment settlement times, cheaper transaction costs, improved fraud detection via AI-driven analytics, and real-time oversight.

Powered by Capital Market - Live News