India's Fintech Sector Moves Towards AI and Tokenization
At the Global Fintech Fest 2026, India's central bank governor unveiled new AI-powered payment features, highlighting technology's role in evolving financial services.
India's Global Fintech Fest 2026 saw a significant focus on the integration of artificial intelligence (AI) and tokenization within the financial services sector. Reserve Bank of India (RBI) Governor Sanjay Malhotra introduced UPI Tap & Pay, a new feature enabling contactless payments via NFC-enabled smartphones by tapping on point-of-sale terminals.
Malhotra also launched MyUPI, an AI-powered platform designed to provide a unified view of transactions, aiming to evolve the Unified Payments Interface (UPI) from a basic payment rail into an AI-driven consumer interface. The RBI governor emphasized that emerging technologies should solve real problems and urged fintech startups to cater to micro, small, and medium enterprises (MSMEs) and consumers in smaller towns, while cautioning against AI-related risks and stressing responsible data management.
The event also featured numerous product launches. Mahindra Finance expanded its AI voice deployment with Sarvam, while Yes Bank and Open introduced an agentic layer to prevent payment failures. Navi and IndusInd Bank collaborated to strengthen UPI processing infrastructure, and Gnani AI launched its sovereign agentic AI platform, Artha, for the BFSI sector.
Tokenization was another prominent discussion point. The RBI and SEBI announced plans for a framework to oversee tokenized corporate bonds. Nandan Nilekani suggested that tokenized assets and AI agents will help unlock credit for the masses, predicting that startups and small businesses will drive job creation in the AI era. These developments collectively indicate a shift in India's fintech ecosystem towards an AI-led and tokenized future.