Speaking at the seventh Global Fintech Fest in Mumbai, Malhotra highlighted how technology is helping lenders assess small firms that previously struggled to secure loans. For businesses without assets to pledge, greater visibility of their finances can improve access to borrowing.

A key development is lending based on business cash flows. Rather than depending on property offered as security, lenders can examine money flowing into an enterprise. Account Aggregators and the Unified Lending Interface are supporting this approach by helping financial information reach lenders.

Malhotra also described the broader move towards banking through mobile devices over the past decade. UPI and Aadhaar-enabled payment services have expanded access for small-town traders and rural customers. Technology has shortened account-opening and payment-processing times, lowered transaction expenses and strengthened fraud detection through AI-based analysis.

The RBI is backing experimentation through its innovation hub and regulatory sandboxes, where new offerings can be tested in controlled settings. Malhotra stressed engagement with startups, responsible innovation and safeguards for public confidence. He also indicated continued support for digital public infrastructure, alongside a role for industry self-regulation and RBI oversight.