On September 10, at the Global Fintech Fest, the Governor of the Reserve Bank of India (RBI), Malhotra, urged fintech firms to bolster customer data protection and cybersecurity protocols. He highlighted that the extensive integration of artificial intelligence (AI) within the financial sector could unleash a host of challenges, encompassing bias, exclusion, cybersecurity threats, data privacy concerns, and the diminishment of human judgment. Malhotra underscored the necessity of effectively mitigating these risks to uphold consumer confidence.

Moreover, the Reserve Bank of India is also keeping a close watch on a wider array of technological risks. On Wednesday, Malhotra's deputy, Jain, pointed out that banks' heavy dependence on a limited number of technology vendors could potentially jeopardize financial stability. Malhotra further elaborated that large corporations should not only strive for scale but also embrace substantial responsibility, steering clear of reckless actions. He cautioned fintech companies against exploiting loopholes in regulations and refraining from engaging in blind expansion—a term indicating unguided, rapid growth without clear oversight from regulatory bodies. He emphasized that regulation and innovation are not contradictory but rather essential pillars for constructing a robust financial ecosystem.