Mumbai, Sept. 10 -- Reserve Bank of India Governor Sanjay Malhotra on Thursday advised fintech firms against expanding their businesses by taking advantage of gaps between regulatory categories, and urged companies to engage with regulators early as they develop and scale new products.

Speaking at the Global FinTech Fest 2026, Malhotra cautioned fintech companies against adopting an approach of expanding first and seeking regulatory clarity later.

"I would gently caution against a mindset of structuring a business around the gaps between regulatory categories, of scaling first and seeking clarity or forgiveness later," Malhotra said.

He said regulatory sandboxes and pilot mechanisms have been created to allow innovators to engage with ...