Reserve Bank of India (RBI) Governor Sanjay Malhotra on Tuesday, 8 September 2026 credited fintech with positioning India at the global forefront of digital innovation, saying the sector has connected the country's vast population to formal finance faster and more affordably than any previous mechanism. His remarks came at the Global Fintech Fest (GFF) 2026 in Mumbai, one of the world's largest gatherings of financial technology stakeholders.

Key Developments at GFF 2026

Malhotra outlined the sweeping transformation fintech has delivered across India's financial ecosystem. He pointed to measurable gains: sharply reduced account-opening and payment-settlement times, lower transaction costs, and enhanced fraud detection powered by AI-driven analytics. He also highlighted the emergence of real-time supervision tools that allow regulators to monitor the system with unprecedented granularity.

'This has been made possible by fintech, which bridges and connects our vast, diverse population to formal finance faster and more affordably,' Malhotra said. He added that fintech had been 'equally significant' in improving customer experience and strengthening the underlying financial infrastructure.

Impact on MSMEs and Credit Delivery

The RBI Governor singled out credit delivery to micro, small and medium enterprises (MSMEs) as an area where fintech's impact has been especially visible. He cited cash flow-based lending, the account aggregator framework, and the Unified Lending Interface as instruments that have materially expanded credit access for businesses that were previously underserved by traditional banking channels.

This comes amid a broader policy push to deepen formal credit penetration in India, where MSMEs account for roughly 30% of GDP but have historically faced a significant credit gap. The RBI's embrace of data-driven lending models signals a structural shift in how the central bank views technology's role in monetary transmission.

RBI's Regulatory Approach to Fintech

Malhotra elaborated on the central bank's philosophy of balancing innovation with stability. He said the RBI has encouraged self-regulation within the fintech industry and actively supported the development of digital public infrastructure on which companies can build new products and services.

'We have been open to new ideas and new players. We have promoted responsible innovation while safeguarding trust, which is the very foundation of finance,' he said. Notably, the RBI's regulatory sandbox framework — launched in earlier years — has been a key vehicle for this approach, allowing startups to test products under controlled conditions before full deployment.

PM Modi's Presence and Political Signal

Malhotra also welcomed Prime Minister Narendra Modi's attendance at the festival, noting that it marked his third consecutive year at GFF — a signal, the Governor said, of the Prime Minister's sustained commitment to technology-led financial inclusion. Modi's repeated presence at the event has reinforced the government's positioning of fintech as a pillar of India's economic identity on the global stage.

Scale of GFF 2026

Kris Gopalakrishnan, Chair of GFF 2026, co-founder of Infosys, and Chairman of Axilor Ventures, said the festival is expected to draw more than 1,00,000 delegates, over 8,000 participating institutions, more than 1,200 speakers, and over 500 investors. The scale underscores India's growing centrality in the global fintech conversation.

As regulatory frameworks mature and digital public infrastructure deepens, the RBI's next challenge will be ensuring that the innovation dividend reaches the last mile — rural households, informal workers, and the smallest enterprises — without compromising systemic stability.