'Fintechs Must Treat Data as Fiduciary Duty, Not Business Asset,' Says RBI Governor Sanjay Malhotra
Sanjay Malhotra said $2.4 billion in fintech funding and 30 unicorns show the sector must protect data and trust as AI risks grow.
- On Thursday at the Global Fintech Festival in Mumbai, Reserve Bank Governor Sanjay Malhotra urged fintechs to treat customer data as a fiduciary duty, stating it must be protected 'as though it was one's own' and used strictly within consent.
- Malhotra framed his address around four pillars—potential, trust, global vision, and institutional support—emphasizing that trust is an operating asset built transaction by transaction, not a marketing strategy.
- State Bank Chairman Setty warned that financial AI systems must be '100 per cent accurate' in an 'AI versus AI' environment, while Malhotra cautioned against risks including bias, cybersecurity threats, and erosion of human judgment.
- Firms must engage transparently with regulators, Malhotra stated, as scaling companies face the obligation to be 'too significant to be careless' and must avoid building businesses around regulatory gaps.
- India has an opportunity to share digital infrastructure and governance frameworks globally, with the country's tokenisation push recently advancing through the launch of Demat 2.0 and the first tokenised corporate bond pilot by REC.
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The Economic Times
Times of India'Fintechs must treat data as fiduciary duty, not business asset,' says RBI Governor Sanjay Malhotra
Reserve Bank of India governor Sanjay Malhotra stressed data fiduciary responsibility for fintechs. He stated that user data must be treated as a trustee asset, not a business asset. Firms must use data strictly within user consent, protecting it diligently. He warned that eroding trust through data misuse leads to irreversible damage. Operational resilience and cybersecurity are essential for firms achieving significant scale.
Treat data as fiduciary responsibility, not asset: RBI Governor tells fintechs
A firm that engages transparently not only earns regulatory goodwill but also gains faster, more durable pathways to scale. On the other hand, a firm that seeks to outrun the rules realises that the rules catch up, sooner or later, and at a much higher cost to itself and to the trust of the customers it serves, says Sanjay Malhotra
RBI Governor warns fintechs on customer data, says ‘Trust is central’
Reserve Bank of India (RBI) Governor Sanjay Malhotra on Thursday called for responsible handling of customer data by fintech companies, saying personal information should be treated as a fiduciary responsibility rather than a commercial asset.
GFF 2026: Fintech must use AI to reach the last mile, build trust and go global, says RBI Governor Sanjay Malhotra
At GFF 2026 in Mumbai, RBI Governor Sanjay Malhotra urged fintechs to use AI and emerging technologies to drive last-mile financial inclusion, build trust through responsible data use, strengthen fraud detection and operational resilience, and take India’s inclusive digital finance model global while working transparently with regulators.
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