At the Global Fintech Fest 2025, RBI Governor Sanjay Malhotra articulated an ambitious roadmap for harnessing digital innovation and public infrastructure to propel India to the forefront of global finance. His vision is anchored in strategies that prioritize financial inclusion, enhanced security, and cutting-edge technologies, aiming to transform how millions access financial services.
Building on India’s Digital Public Infrastructure
India’s remarkable journey into the digital finance revolution rests on three foundational pillars: identity, payments, and data. The identity layer, spearheaded by Aadhaar, boasts over 1.4 billion enrollments that facilitate seamless electronic Know Your Customer (e-KYC) processes and Direct Benefit Transfers (DBT), granting the government unprecedented operational efficiency in delivering welfare programs.
The payments landscape is further bolstered by the Unified Payments Interface (UPI), which boasts around 490 million unique users and nearly 20 billion transactions monthly, making India a global leader in real-time payment volumes. According to Malhotra, “We need to build a data public infrastructure that will integrate the huge pool of data that we have,” a commitment echoed in the ongoing digitalization efforts across various government systems.
The Flourishing FinTech Ecosystem and RBI’s Role
India’s vibrant fintech ecosystem encompasses over 10,000 firms, drawing in an impressive $40 billion in investments over the past decade. This thriving landscape is not just about the quantity of startups; it also reflects a commitment to innovation and collaboration. Governor Malhotra highlighted the RBI’s proactive engagement with fintech companies through more than 500 interactions in the 2024-25 fiscal year, facilitated by platforms such as FinTeract.
Among the RBI’s significant initiatives is the launch of a Digital Payments Intelligence Platform designed to enhance fraud detection capabilities. “Fintechs must innovate responsibly, focusing not only on speed but also on sustainability and trust,” Malhotra urged, as he emphasized the essential balance between growth and consumer safety in an environment prone to digital risks.
Key Focus Areas for the Future of FinTech
The RBI has identified five core areas essential for the next chapter of digital finance: data aggregation, the digital rupee, asset tokenization, artificial intelligence, and fraud prevention. The Account Aggregator framework, for example, plays a pivotal role in enhancing data security and integrity, serving 160 million accounts and processing a staggering 3.66 billion data requests.
Moreover, the introduction of the digital rupee (CBDC) in 2022 and the associated pilot programs are set to revolutionize the public’s interaction with money. Malhotra compared the potential impact of the Unified Lending Interface (ULI) for credit modelling to that of UPI for payments—both pivotal in pushing the envelope of financial access. “Prioritise building products for the in-accessed and the unreached,” he implored, calling for meticulous attention to underserved segments of society.
Guiding Principles for a Resilient FinTech Future
As India marches forward, the guiding principles laid out by Malhotra will serve as the north star for the fintech sector. Inclusion stands at the heart of his vision, emphasizing the need for products that are not only technically advanced but also user-friendly and accessible. “Get closer than ever to your customers. So close, that you tell them what they need,” he quoted Steve Jobs to drive home the significance of a customer-first approach.
Additionally, Malhotra advocates for innovation that embeds trust and compliance, highlighting that trust is vital in a landscape increasingly beset by data security concerns. “However, there is still a lot of work to do in that area,” he acknowledged, reminding stakeholders of the continuous journey toward safeguarding users in a rapidly evolving digital ecosystem.
Charting a Global Path While Anchoring Locally
Malhotra’s vision is firmly rooted in a global-local strategy, urging fintech companies to adopt international best practices while tailoring solutions to local contexts. “Think global by working local. Let India lead how the future of digital finance shapes globally,” he stated, calling for a concerted effort to position India as a frontrunner on the global fintech stage. This vision paints a picture of an inclusive and resilient financial future where innovation knows no bounds.
The potential of AI in enhancing user experience cannot be underestimated, with initiatives aimed at developing standardized data systems and indigenous AI models promising to further empower India’s fintech journey. As the sector continues to evolve, the success of these initiatives will ultimately hinge on collaboration, compliance, and a steadfast commitment to customer-centric solutions.
