Archive · 9 Sep 2026
RBI Governor Says FinTechs Are Closing India’s MSME Credit Gap
India’s small businesses often struggled to get loans from traditional banks.
RBI Governor Sanjay Malhotra said FinTech companies are helping change that.
They use digital information to offer loans based on a business’s cash flow.
This can help businesses that do not have traditional collateral or a long banking history.
Digital services also let people pay, save and borrow more easily.
Systems such as UPI, Aadhaar-Enabled Payment Systems and Jan Dhan connect more people to formal finance.
The RBI says innovation should continue while keeping financial services safe and trustworthy.
These changes may support jobs, livelihoods and economic growth.
RBI Governor Sanjay Malhotra said FinTechs are helping close India’s MSME credit gap.
FinTechs are extending formal, collateral-like credit to small businesses overlooked by traditional lending models.
Digital systems such as UPI, Aadhaar-Enabled Payment Systems and Jan Dhan have expanded financial access.
FinTech has improved account opening, payment settlement, transaction costs and fraud detection, including through AI analytics.
Cash-flow lending, account aggregators and the unified lending interface are improving credit delivery to MSMEs.
- Who
- RBI Governor Sanjay Malhotra and FinTech companies.
- What
- FinTechs are helping bridge the credit gap for India’s micro, small and medium enterprises while expanding digital financial access.
- When
- The remarks were published on September 8, 2026, during the inaugural session of the 7th Global Fintech Festival.
- Where
- At the inaugural session of the 7th Global Fintech Festival in India.
- Why
- To explain how FinTech is expanding formal credit, financial inclusion and efficiency while supporting jobs, livelihoods and economic growth.
- Speaker
- RBI Governor Sanjay Malhotra
- Main issue
- Credit access for India’s MSMEs
- Lending approach
- Cash-flow-based lending and formal, collateral-like credit
- Digital systems cited
- UPI, Aadhaar-Enabled Payment Systems and the Jan Dhan ecosystem
- Other benefits
- Faster account opening and payment settlement, lower transaction costs and stronger fraud detection
- RBI support
- Regulatory sandbox, Reserve Bank Innovation Hub and continued engagement with FinTech stakeholders
- Policy objective
- A safer, trustworthy, inclusive, fair and efficient financial system