RBI Deputy Governor calls for balanced fintech policy framework

Financial regulators must craft policies that enable innovation to flourish responsibly while ensuring robust safeguards, according to RBI Deputy Governor Rohit Jain. Speaking at the Global Fintech Fest 2026, Jain outlined a three-pronged approach to effective fintech regulation: establishing clear guardrails where risks are well-understood, permitting experimentation in areas where risks remain uncertain, and maintaining flexibility to adapt rules as technology evolves.

"Good policy should give innovation room to grow, while ensuring that accountability and resilience grow with it," Jain said. He emphasized that the primary objective of policymakers must be to create conditions enabling useful innovation to develop in a responsible manner, rather than imposing blanket restrictions that stifle growth.

The RBI official underscored the importance of regulators remaining grounded in ground-level realities. In a rapidly transforming fintech landscape, supervisory returns and observations alone are insufficient for understanding emerging technologies, he noted. Instead, continuous dialogue with financial institutions, fintech companies, and technology providers is essential to identify new use cases and potential risks.

Jain's comments reflect the RBI's broader approach to fintech regulation, balancing India's ambitions as a digital economy with the need to protect financial stability and consumer interests. The remarks come as India's fintech sector continues rapid expansion, with regulators grappling with how to oversee novel financial services and technologies.