Mumbai, September 10 (Daily Kiran) : The Reserve Bank of India (RBI) has officially recognized the Unified Fintech Forum as the sector’s second self-regulatory organization (SRO). This announcement was made by RBI Governor Sanjay Malhotra at the Global Fintech Fest 2026 in Mumbai. Previously, the Fintech Association for Consumer Empowerment (FACE) was acknowledged as the first SRO in the fintech sector.
During his address, Malhotra emphasized that the RBI views fintech companies not merely as businesses to be regulated, but as strategic partners that can enhance the accessibility and effectiveness of financial services. He reiterated the central bank’s commitment to supporting responsible innovation and technological advancement, while also urging fintech firms to increase their accountability.
Malhotra warned fintech companies against exploiting potential gaps in regulatory categories to expand their businesses. He noted that some firms adopt a strategy of rapid expansion followed by a search for regulatory clarity, which he believes is not a sustainable long-term model.
As fintech companies grow in size, customer base, and transaction volume, their responsibilities also increase. Therefore, he stressed the importance of adopting a transparent and responsible business framework from the outset.
He stated that operational resilience, business continuity, and cybersecurity should not be viewed merely as costs. Financial institutions must fulfill their systemic responsibilities in accordance with their size and impact.
The governor pointed out that while many fintech firms may not yet fully fit within traditional financial regulatory frameworks, their obligations to protect customer interests will grow alongside their payment transactions, loan distributions, and user numbers.
Malhotra highlighted the critical importance of data security, comparing the management of financial data to a trustee safeguarding a beneficiary’s assets. He insisted that data obtained with customer consent should only be used for the specified purpose.
He also explained that the Account Aggregator framework is based on this principle. Fintech companies should regard data as a trust-based responsibility rather than merely a business asset. Companies involved in payments, lending, wealth management, and other financial services must prioritize data security, cyber risk, and transparency.
Malhotra remarked that speed in technology and service delivery alone is insufficient. “If a financial system operates at the speed of light but fails to gain public trust, its acceptance will remain limited,” he stated. He noted that building trust takes years, but it can be lost in an instant. Thus, fintech firms should center their operations around trust, transparency, and consumer protection.
In his speech, the governor also highlighted India’s achievements in financial inclusion, noting the existence of 570 million Jan Dhan accounts, 250 million micro-insurance policies, and 90 million beneficiaries of the Atal Pension Scheme.
He mentioned that platforms like UPI, the Aadhaar-enabled payment system, and the Jan Dhan ecosystem have made banking services more accessible, directly reaching the populace. This shift has made financial services more inclusive.
Malhotra concluded by stating that India’s fintech ecosystem currently ranks third globally, having attracted $2.4 billion in investments last year, with 30 active fintech unicorns in the country. However, he cautioned against measuring India’s success solely by statistics, emphasizing that the most significant achievement is the integration of digital finance into the daily lives of millions of Indians.
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