RBI Governor Outlines 5 Priorities for India’s Fintech Future

Reserve Bank of India (RBI) Governor Sanjay Malhotra addressed the Global Fintech Fest 2025 in Mumbai on October 8, 2025, outlining the central bank’s vision for inclusive and sustainable growth through Digital Public Infrastructure (DPI) and FinTech innovation. In his keynote speech, Malhotra highlighted how India’s digital transformation rests on three layers: identity, payments, and data, which together underpin the country’s financial inclusion efforts.

He noted that the Aadhaar ecosystem, Unified Payments Interface (UPI), and platforms like DigiLocker and GSTN have created a strong digital foundation enabling access and innovation at scale. Additionally, he emphasized the symbiotic role of India’s 10,000-plus FinTech firms, supported by over $40 billion in investments in the last decade, in expanding financial services to underserved populations.

The Governor also outlined five priority areas shaping the next phase of India’s digital journey: data aggregation, the digital rupee, asset tokenization, artificial intelligence, and digital fraud prevention. Stressing the importance of trust, inclusion, and responsible innovation, Malhotra said the coming decade would focus on deepening financial access while ensuring the security and stability of India’s rapidly evolving digital ecosystem.

DPI, Fintech, And India’s Growth

The Governor described DPI as the primary driver driving India’s digital transformation over the past decade. He said DPI rests on three foundational layers that have collectively addressed barriers to inclusion and enabled innovation at scale:

• Identity layer: Anchored by Aadhaar, with over 1.4 billion enrollments, it enables instant authentication and facilitates the opening of bank accounts through e-KYC. It also powers the government’s Direct Benefit Transfer (DBT) system, which channels subsidies and welfare directly into beneficiary accounts.

• Payments layer: Systems such as the Aadhaar Enabled Payment System (AePS) and UPI translate identity into action. UPI alone supports around 490 million unique users, executing nearly 20 billion transactions per month, which accounts for almost half of global real-time payment volumes.

• Data layer: The digitalisation of government departments has revolutionised service delivery. For instance, income tax returns are now processed in about 10 days, with many refunds issued within 24 hours. Similarly, the Goods and Services Tax Network (GSTN) integrates data from 28 states and 8 Union Territories, while DigiLocker, with over 590 million users, enables citizens to store and share documents securely.

Malhotra further noted that India’s FinTech ecosystem complements DPI by rapidly scaling solutions for inclusion and efficiency. The RBI, he said, engaged with the sector through nearly 500 interactions in FY 2024–25, along with structured platforms like FinTeract and Finquiry, which have reached more than 1,700 FinTech representatives in total.

Additionally, the RBI has launched a FinTech Repository for evidence-based policymaking and recognized a Self-Regulatory Organisation (SRO) to promote governance and best practices. He concluded that the synergy between “public rails and private innovation” has been the bedrock of India’s success, enabling financial services to reach the population at scale and at an affordable cost.

The Next Phase of Fintech

The Governor identified five priority areas shaping the next phase of India’s digital growth, aimed at expanding inclusion, enhancing trust, and deepening the responsible use of data:

• Aggregation and Leveraging of Financial Data: The Account Aggregator (AA) framework enables individuals to securely share financial data with regulated entities. It now includes 17 AAs, 650 Financial Information Users (FIUs), 150 Financial Information Providers (FIPs), and serves 160 million accounts, processing 3.66 billion data requests. The RBI plans to strengthen onboarding, data security, and consent mechanisms, while expanding integration with more data sources to widen access and interoperability.

• Digital Rupee: Launched in December 2022, the Central Bank Digital Currency (CBDC) now involves 19 banks and 7 million users, enabling person-to-person and person-to-merchant payments. UPI interoperability has boosted adoption, while programmable CBDC (p-CBDC) pilots, such as Gujarat’s G-SAFAL and Andhra Pradesh’s DEEPAM 2.0, demonstrate their use in targeted subsidy delivery and improved welfare efficiency.

• Asset Tokenisation: The RBI announced an Unified Markets Interface (UMI) that will enable tokenisation of financial assets and settlements through wholesale CBDC. Early pilot results on Certificates of Deposit have shown improved market efficiency, reflecting the potential to make Indian markets more transparent and accessible.

• Artificial Intelligence (AI): AI can enhance user experience and serve as a public good. The RBI’s FREE-AI committee recommended developing standardised financial data systems, compute infrastructure, and indigenous AI models to support innovation and responsible adoption across financial services.

• Digital Frauds: As digital finance expands, Malhotra highlighted new safeguards such as two-factor authentication, card tokenisation, and the Digital Payments Intelligence Platform (DPIP) for real-time fraud detection. Furthermore, MuleHunter.ai is now used by 21 banks, an AI tool that detects and flags mule bank accounts.

Why This Matters

The Governor’s address reflects how India’s financial architecture is evolving around DPI and FinTech innovation to drive inclusive, technology-led growth. Crucially, his remarks underline the central role of digital frameworks like Aadhaar, UPI, and DigiLocker in transforming access to finance, governance, and welfare.

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Moreover, the Governor’s emphasis on the next phase, covering data aggregation, the digital rupee, asset tokenization, artificial intelligence, and fraud prevention, signals India’s intent to build a secure, interoperable, and innovation-driven financial ecosystem. These initiatives are particularly relevant as the country seeks to deepen credit access, digitize markets, and enhance regulatory oversight through transparent, data-led mechanisms.

In conclusion, Malhotra urged FinTechs to focus on five guiding principles: build for inclusion, adopt a customer-first mindset, innovate in credit delivery, embed trust and compliance in operations, and think global while anchoring local. These priorities, he said, should steer the industry toward responsible innovation and sustained public confidence.

He emphasized that by aligning with these principles, FinTechs can extend the success of digital payments to new areas such as credit and wealth access, particularly for underserved communities.

However, these ambitions contrast with concerns around India’s DPI. Without clear accountability and transparency, such systems could centralize power and limit competition. Some platforms risk conflicts of interest when the same entities both operate infrastructure and compete on it. Additionally, issues such as limited interoperability, excessive data collection, and lack of user choice could undermine the very inclusion DPI seeks to achieve.

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