Mumbai, Sept. 8 -- Reserve Bank of India Governor Sanjay Malhotra on Tuesday said fintech companies are helping bridge India's credit gap for Micro, Small and Medium Enterprises (MSMEs) by extending formal, collateral-light credit to millions of small businesses that were earlier outside traditional lending models.

Addressing the Global Fintech Fest 2026 in Mumbai, Malhotra said the impact of fintech was particularly visible in credit delivery to small businesses.

"Through cash-flow based lending, account aggregators, and platforms like the Unified Lending Interface, fintechs are helping bridge India's MSME credit gap by extending formal, collateral-light credit to millions of small businesses that, for decades, were invisible to tradit...