Fintech Has Taken Banking From Branch To Hand: RBI Guv Malhotra

Fintech has transformed the architecture of Indian finance over the past decade, taking banking services from physical branches to the hands of citizens, RBI Governor Sanjay Malhotra said at the Global FinTech Fest (GFF) 2026 on Tuesday.

In his welcome remarks at the inaugural session of the festival, the RBI Governor said digital platforms and public infrastructure such as UPI, Aadhaar-enabled payment systems and the Jan Dhan ecosystem have enabled people across urban and rural India to transact, save and borrow through digital channels.

“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,” the RBI Governor said.

He said fintech is helping connect India’s diverse population with formal financial services more quickly and at lower cost.

The transformation, he added, has made financial inclusion an everyday reality for hundreds of millions of Indians rather than merely a policy objective.

The Governor also highlighted fintech’s contribution to improving customer experience and the efficiency of financial infrastructure.

According to Malhotra, technology has reduced account-opening and payment-settlement times, lowered transaction costs and strengthened fraud detection through AI-based analytics.

MSME Credit Access Gets Push

The RBI Governor identified lending to micro, small and medium enterprises (MSMEs) as one of the areas where the impact of fintech has been particularly visible.

He said cash-flow-based lending, account aggregators and platforms such as the Unified Lending Interface are helping lenders extend formal, collateral-light credit to small businesses that have historically remained outside traditional underwriting frameworks.

“This is credit reaching the last mile of enterprises, powering jobs and livelihoods across the country,” he said.

Focus On Responsible Innovation

The RBI Governor said the central bank would continue supporting innovation while protecting trust in the financial system.

The Reserve Bank, he added, sees fintech as a partner in developing the financial system of the future.

The approach, he said, is aimed at building finance that is safer, more trustworthy, inclusive, fair and efficient, while supporting economic growth and public welfare.

Its Regulatory Sandbox, Reserve Bank Innovation Hub and engagement with startups and other stakeholders are intended to support innovation while maintaining financial-sector safeguards, Malhotra said.