Government Strengthens Fintech Ecosystem with Enhanced Regulatory Framework: Pankaj Chaudhary

July 20, 2026

Mumbai, July 20: The government, along with the Reserve Bank of India (RBI), has fortified the fintech ecosystem with an advanced regulatory framework and consumer protection measures. These initiatives include enhancing cybersecurity through the Digital Personal Data Protection Act, AI-based fraud detection, and the establishment of a national cybercrime reporting mechanism. This information was shared by Pankaj Chaudhary, the Minister of State for Finance, on Monday.

In a written response to a question in the Lok Sabha, Minister Chaudhary stated that the government has been in continuous dialogue with financial sector regulators and other stakeholders to review issues related to the fintech ecosystem, including digital loan platforms and payment aggregators. Based on these discussions, various regulatory and supervisory interventions have been made periodically.

He further noted that under these measures, the RBI issued a framework for self-regulatory organizations (SROs) in the fintech sector on May 30, 2024. This framework aims to establish and enforce regulatory standards, promote ethical conduct, ensure market integrity, resolve disputes, and enhance transparency and accountability among its members.

Additionally, to address threats associated with web and mobile applications, the RBI released master guidelines on digital payment security controls in February 2021, which include provisions for personal data protection under the Digital Personal Data Protection Act, 2023.

Moreover, to safeguard consumer interests and facilitate the reporting of cyber incidents, including illegal loan apps, the Ministry of Home Affairs has launched the National Cyber Crime Reporting Portal and the national cybercrime helpline number “1930.” Banks also provide a platform called ‘Sachet’ for citizens to lodge complaints against any institution involved in illegal fund collection. The RBI and banks are conducting awareness campaigns on cybercrime prevention, which include short SMS alerts, radio campaigns, and promotional activities.