Mumbai, October 8, 2025: Reserve Bank of India (RBI) Governor Sanjay Malhotra on Wednesday cautioned that digital fraud is becoming an increasingly serious concern for India. His remarks came while addressing the Global Fintech Fest 2025, a day after Union Finance Minister Nirmala Sitharaman raised alarms over the growing menace of deepfake technology.
Sitharaman’s Warning on Deepfakes
Speaking at the same event on October 7, Finance Minister Nirmala Sitharaman said that several deepfake videos impersonating her had been circulating online, misleading citizens and distorting facts.
“While AI opens up extraordinary opportunities, we must confront its darker side. The same tools that empower innovation can be weaponised for deception and manipulation. I have personally seen many deepfake videos of myself being circulated online — fabricated to mislead citizens and distort reality,” Sitharaman said.
RBI Governor on AI and Digital Finance
In his address, RBI Governor Sanjay Malhotra highlighted the transformative potential of Artificial Intelligence (AI) in enhancing the next generation of Digital Public Infrastructure (DPI).
“India has a vibrant fintech ecosystem, with nearly 10,000 active institutions. The sector has made financial services accessible and affordable to millions,” he said.
Malhotra urged Indian fintech companies to focus on designing user-friendly and inclusive products, ensuring that financial tools remain accessible to all.
“India’s digital journey has so far focused on building strong foundations and expanding access to financial services such as savings, insurance, and investments. The next phase must aim for universal reach, greater impact, and responsible data usage,” he added.
RBI’s Vision for the Future
Governor Malhotra said that alongside the Digital Rupee initiative, the central bank is also leveraging financial data analytics and exploring asset tokenization to prepare for the evolving financial landscape. However, he acknowledged that more progress was needed in these areas.
“We have initiated steps in several key areas — financial data utilisation, digital rupee operations, early measures in asset tokenization, and artificial intelligence for future readiness. Yet, digital fraud is emerging as one of the most pressing challenges we face today,” Malhotra warned.
The remarks from both Sitharaman and Malhotra underscore India’s growing focus on AI governance, digital security, and financial integrity as the country’s fintech sector continues its rapid expansion.
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