Legal Aspects of Fintech in India

Fintech has widened the access to payments, credit and investment in India, but its characteristics of speed and anonymity have also enabled rising financial fraud and unauthorized advice. This paper asks whether India’s legal framework is equipped enough to adequately protect the consumers on digital financial platforms. Rather than treating Fintech as a single category, it analyses two regulators: the Reserve Bank of India, which governs payments and digital lending, and the Securities and Exchange Board of India, which governs robo-advisory, algorithmic trading and unregistered “finfluencers”. Using a doctrinal methodology of research, it examines statutes, directions, regulations and circulars, alongside fraud data and the Digital Personal Data Protection Act, 2023. It finds that regulation has followed market development rather than anticipating them, that several activities fit poorly within existing regulatory categories, and that regulation alone, without enforcement, cannot curb fraud without enforcement, awareness and coordination. The most significant gaps between regimes, including fragmented grievance redressal and overlapping breach-reporting duties. The paper recommends closer inter-regulatory coordination and a dedicated robo-advisory framework, proportionate influencer registration and clearer alignment with the DPDP Act.