Reserve Bank of India governor Malhotra urged fintech firms to protect customer
data and strengthen cybersecurity as AI's role in finance grows, warning AI can
cause bias and exclusion, raise cyber and data-privacy risks, and weaken human
judgement. He said addressing these risks is essential to preserving consumer
trust and that the RBI is reviewing broader technology risks. Deputy governor
Jain flagged banks' reliance on a small number of common tech providers as a
potential threat to financial stability. Malhotra said large firms must be
managed not only because they are too big to fail but because they are too
important to be treated carelessly, and he warned fintechs against exploiting
regulatory gaps or expanding quickly without seeking clear guidance from
regulators. He said regulation and innovation are complementary pillars of a
resilient financial ecosystem.
