RBI governor urges fintechs to focus on financial inclusion, warns against neglecting underserved sectors

Sanjay Malhotra calls on fintech firms to build inclusive systems and serve unbanked communities

October 9, 2025

RBI governor calls on fintechs to serve the unbanked

RBI chief highlights need for trust, transparency, and digital fraud prevention in fintech sector

Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday called on India’s growing fintech ecosystem to channel its innovation and resources toward serving the country’s underserved and unbanked populations to deepen financial inclusion.

Speaking at the Global Fintech Fest 2025 in Mumbai, Malhotra acknowledged that catering to privileged consumers may appear more profitable but urged startups to “build for inclusion” and prioritize accessibility and equity.

“While there may be higher profits to be made by deepening access to the privileged, prioritise building systems to expand financial services to the unaccessed, the unreached, and the unserved,” Malhotra said, addressing a packed audience of industry stakeholders.

He emphasized the need for fintech firms to design products that are simple, user-friendly, and accessible to all, including senior citizens, individuals with limited digital literacy, and specially-abled users.

Malhotra further underscored the importance of trust, transparency, and compliance, urging fintech companies to embed robust data protection mechanisms and consumer safeguards into every product offering.

India’s fintech landscape has expanded rapidly, with over 10,000 fintech companies collectively raising more than USD 40 billion over the past decade. The RBI Governor praised the sector for driving digital financial inclusion at a population scale but said the next phase must focus on responsible credit growth and fraud prevention.

Highlighting concerns around digital financial fraud, Malhotra cited the success of the RBI’s MuleHunter solution, which has achieved a 90% success rate in helping 21 banks trace fraudulent accounts used in cybercrimes.

He also stressed the need for account aggregators to enhance interoperability and data integration. The RBI, he said, is developing new standards to improve user onboarding, strengthen security, and boost awareness under the account aggregator framework.

On addressing India’s credit gap, Malhotra said the recently launched Unified Lending Interface (ULI) could help bridge unmet demand by simplifying access to credit for small businesses and individuals, calling credit the “lifeblood of inclusive growth.”

The central bank is also working on a Unified Markets Interface (UMI)—a next-generation financial infrastructure that will enable tokenization of assets and settlements using wholesale Central Bank Digital Currency (CBDC).

Meanwhile, Infosys co-founder Nandan Nilekani announced that the ‘Finternet’ initiative—a unified, user-centric financial ecosystem he has been advocating—will go live in 2026. The platform aims to integrate diverse assets such as land, property, and investments into a tokenized, interconnected network.

At the same event, the National Payments Corporation of India (NPCI) unveiled several innovations, including:

AI-based UPI Help, powered by a Small Language Model (SLM), for payments and dispute resolution.
IoT Payments with UPI, enabling transactions directly from connected devices such as cars, wearables, and smart TVs.
‘Banking Connect’, an interoperable net banking solution.
‘UPI Reserve Pay’, allowing users to securely block and manage credit limits across merchant and UPI apps.

The event showcased India’s commitment to making digital finance more inclusive, secure, and future-ready, signaling the RBI’s intention to balance innovation with responsible growth.

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