New Delhi: The Centre and the Reserve Bank of India (RBI) have stepped up efforts to strengthen India’s fintech ecosystem by introducing enhanced regulatory frameworks, stronger cybersecurity measures and consumer protection initiatives aimed at making digital financial services safer and more reliable.
The government said it has been working closely with financial sector regulators and other stakeholders to address issues relating to digital lending platforms, payment aggregators and the broader fintech sector. Based on periodic reviews, several regulatory and supervisory measures have been introduced to improve transparency, accountability and market integrity.
Among the key initiatives, the RBI introduced the Framework for Self-Regulatory Organisations in the FinTech Sector (SRO-FT) to establish industry standards, promote ethical conduct and strengthen governance within the sector. The central bank has also implemented digital payment security controls and encouraged the use of Artificial Intelligence (AI) and Machine Learning (ML)-based fraud detection systems for UPI transactions through the National Payments Corporation of India (NPCI).
To enhance data privacy, the Ministry of Electronics and Information Technology (MeitY) has notified the Digital Personal Data Protection (DPDP) Act, 2023, along with the DPDP Rules, 2025. The RBI has also continued its Regulatory Sandbox framework, enabling fintech firms to test innovative financial products and services in a controlled regulatory environment.
For consumer protection, the government has strengthened cybercrime reporting mechanisms through the National Cybercrime Reporting Portal and the 1930 helpline, allowing citizens to report cyber frauds, including illegal loan apps. Banks and the RBI are also conducting awareness campaigns, electronic banking awareness and training (eBAAT) programmes, and public outreach initiatives to educate users about cyber fraud prevention and digital payment security.
The information was provided by Minister of State for Finance Pankaj Chaudhary in a written reply in the Lok Sabha on Sunday.
