RBI Governor Sanjay Malhotra warns fintechs against exploiting regulatory gaps
At the Global FinTech Fest 2026, Reserve Bank of India Governor Sanjay Malhotra called out fintech companies for trying to skirt regulations and warned them against the "I would gently caution against a mindset of structuring a business around the gaps between regulatory categories, of scaling first and seeking clarity or forgiveness later," mindset.
He urged fintech companies to work closely with regulators from the start, making it clear that shortcuts aren't cool when it comes to fintech.
RBI Governor urges secure data handling
Malhotra put a spotlight on how customer data should be handled, with purpose, consent, and care, not just as something to cash in on.
He also talked up RBI's sandbox programs that let fintechs test new ideas safely.
As companies grow bigger, he reminded them they're responsible for keeping systems secure and resilient.
His key message: same rules for everyone; if you do risky stuff or scale up fast, expect tighter oversight no matter your size.