The Government, in collaboration with the Reserve Bank of India (RBI) and other stakeholders, has been continuously reviewing the fintech ecosystem, including digital lending platforms and payment aggregators, to strengthen regulation, promote innovation, and enhance consumer protection.

As part of these efforts, the RBI introduced the Self-Regulatory Organisation (SRO) Framework for the FinTech Sector in May 2024 to promote ethical practices, improve transparency, ensure market integrity, and establish industry-wide regulatory standards.

To strengthen digital payment security, the RBI has mandated minimum security standards for internet banking, mobile banking, card payments, and other digital payment channels. In addition, the National Payments Corporation of India (NPCI) uses AI and machine learning-based fraud monitoring systems to detect suspicious UPI transactions and help prevent digital payment fraud.

The Government has also strengthened data privacy through the Digital Personal Data Protection (DPDP) Act, 2023 and the DPDP Rules, 2025, while the RBI's Regulatory Sandbox framework continues to support the testing of innovative financial products and services in a controlled regulatory environment.

To protect consumers, the Government has expanded cyber fraud reporting mechanisms through the National Cybercrime Reporting Portal and the 1930 helpline, while the SACHET portal enables citizens to report illegal deposit-taking and lending activities. Alongside these measures, the RBI and banks continue to conduct awareness campaigns and financial literacy programmes to educate customers about cyber fraud prevention and safe digital banking practices.