RBI chief urges fintechs to treat user data as a fiduciary duty

At the Global Fintech Festival 2026, RBI Governor Sanjay Malhotra called on Indian fintechs to view customer information as a fiduciary responsibility rather than a revenue source. He cautioned against strategies that exploit gaps between regulatory categories and urged firms to obtain clear consent, limit usage, and safeguard data as a trustee would. Malhotra praised the country's digital finance achievements, citing 57 crore PMJDY accounts and 280 billion digital transactions in FY26, yet stressed that many citizens remain unserved.

He argued that fintechs must focus on inclusive solutions for the informal sector, women entrepreneurs, and small farmers, rather than only serving already banked users. The governor also warned that as firms grow, their operational resilience, cyber security, and regulatory compliance become essential to maintain trust and avoid becoming a systemic risk.