Overview
- RBI Deputy Governor Rohit Jain warned on Wednesday that many banks and fintechs rely on a small set of cloud, technology and AI-model providers, and that a disruption at a common provider could spread quickly across the financial system.
- Jain said technology amplifies three risks—speed, concentration and opacity—and stressed that institutions cannot outsource responsibility for algorithmic outcomes by blaming vendors.
- RBI Governor Sanjay Malhotra said on Thursday that fintechs must treat customer data as a fiduciary duty, use data only with clear consent, and strengthen operational resilience as firms grow in scale.
- The central bank announced practical steps to strengthen governance by launching a corporate-bond tokenisation pilot with SEBI and recognising the United Fintech Forum as a second fintech self-regulatory organisation.
- RBI signalled a posture of preparedness rather than blanket rules, urging proportional, outcome-based regulation, upgraded supervisory tools and industry-led standards to detect and contain fast-moving tech failures.