Global Fintech Fest 2026: RBI on Tokenisation, Agentic AI, and India's Financial Inclusion Index at 70

Why in News

The Global Fintech Fest (GFF) 2026 was held in Mumbai with the theme "Potential to Impact: Agentic AI | Tokenisation | Quantum: Trusted, Connected, Global Systems for Inclusive Finance." The Reserve Bank of India (RBI) and the Ministry of Finance used the platform to articulate India's next-phase fintech agenda — centred on tokenisation of financial assets, responsible Agentic Artificial Intelligence (AI) in banking, and quantum-safe financial infrastructure. India's Financial Inclusion Index (FI-Index) was reported at 70.0 as of March 2026, up from 67.0 in March 2025 — reflecting measurable expansion of formal financial services to previously excluded populations.

Background

The Global Fintech Fest is an annual flagship conference co-organised by the Payments Council of India (PCI), National Payments Corporation of India (NPCI), and the Fintech Convergence Council (FCC). It has grown into Asia's largest fintech event, bringing together regulators, banks, startups, investors, and technology companies. Previous editions focused on Digital Public Infrastructure (DPI), CBDC, and cross-border payments.

India's fintech sector has undergone a remarkable transformation over the last decade — driven by the JAM trinity (Jan Dhan accounts, Aadhaar, Mobile phones), UPI, and the Account Aggregator (AA) framework. As of 2026, India has:

• Over 500 million UPI users and 15+ billion monthly UPI transactions
• ~55 crore Jan Dhan accounts with ₹2.3 lakh crore in deposits
• A FI-Index of 70.0 (March 2026) — reflecting significant but still incomplete financial inclusion
• A ₹11,000+ crore fintech startup ecosystem with over 9,000 registered fintech companies

Key Themes at GFF 2026

1. Tokenisation of Financial Assets

Tokenisation is the process of converting rights to an asset (financial or physical) into a digital token on a distributed ledger or blockchain. In the financial context, RBI highlighted two dimensions:

• Card/Account Tokenisation: Replacing sensitive card numbers with a unique digital token for each device-merchant combination — improving payment security by ensuring that even if a token is intercepted, it cannot be used for fraudulent transactions. RBI mandated card-on-file tokenisation for all payment aggregators from October 2022.
• Asset Tokenisation: Converting financial instruments (government securities, bonds, trade receivables, real estate investment trust units) into blockchain-based tokens — enabling fractional ownership, 24/7 trading, and programmable finance (e.g., automatic coupon payments coded into the token). RBI's draft framework for regulated asset tokenisation was released for consultation ahead of GFF 2026.

2. Agentic AI in Finance

Agentic AI refers to AI systems that can autonomously plan and execute multi-step tasks — going beyond answering queries (chatbots) to independently conducting transactions, managing portfolios, processing claims, and onboarding customers. At GFF 2026, RBI articulated principles for responsible Agentic AI in banking:

• Human-in-the-loop requirements for high-value or irreversible financial decisions
• Explainability standards — AI-driven credit decisions must be explainable to customers and auditable by regulators
• Accountability frameworks — banks remain fully responsible for AI-agent actions taken on their behalf
• Data privacy compliance — Agentic AI must operate within the Digital Personal Data Protection Act (DPDPA), 2023 framework

3. Quantum-Safe Financial Infrastructure

Linking to the National Quantum Mission (NQM) milestones, RBI flagged the need for Indian banks to begin migrating to post-quantum cryptography (PQC) standards — particularly for encryption of inter-bank settlement systems, card networks, and SWIFT messaging. The NIST PQC standards (finalised 2024) are the recommended baseline.

Key Facts

What is the Financial Inclusion Index (FI-Index)?

The FI-Index is a composite index published annually by RBI (since 2021) to capture the extent and depth of financial inclusion in India. It is constructed across three dimensions:

• Access (35% weight): Availability of banking touchpoints — branches, ATMs, business correspondents (BCs), digital access points
• Usage (45% weight): Actual use of financial products — deposits, credit, insurance, pension
• Quality (20% weight): Consumer protection, financial literacy, responsible lending

The index ranges from 0 (complete financial exclusion) to 100 (complete financial inclusion). India's score of 70.0 in March 2026 reflects significant progress but also indicates that approximately 30% of the inclusion gap remains — particularly in quality dimensions and in reaching the poorest rural and tribal populations.

Constitutional Provisions

• Article 246 + Entry 45, List I: Banking is a Union subject — Parliament and the Centre govern financial regulation, fintech policy, and RBI's mandate.
• Article 38 (DPSP): The State shall strive to promote the welfare of the people by securing a social order — financial inclusion through fintech directly serves this directive.
• Article 39(b) (DPSP): Ownership and control of material resources should be distributed for common good — democratisation of financial services through digital public infrastructure is in alignment with this principle.

Legal Framework

• Payment and Settlement Systems Act, 2007 (PSS Act): RBI's legal basis for regulating fintech payment infrastructure, tokenisation, and NPCI operations.
• RBI Act, 1934: Empowers RBI to issue guidelines on bank operations — basis for Agentic AI and tokenisation guidelines applicable to regulated banks and NBFCs.
• Digital Personal Data Protection Act (DPDPA), 2023: India's data privacy framework; governs how fintech and Agentic AI systems collect, process, and store customer financial data. A Data Protection Board will enforce it.
• Information Technology Act, 2000: Cybersecurity obligations for financial entities; quantum-safe migration is a forward-looking compliance requirement under its data security provisions.
• SEBI's BRSR Framework: Business Responsibility and Sustainability Reporting — AI-driven investment platforms face ESG and algorithm accountability disclosures under SEBI's evolving framework.

Institutional Framework

• RBI: Primary regulator; sets tokenisation standards, Agentic AI guardrails, and PQC migration timelines for banks.
• NPCI: Operates core digital payment infrastructure (UPI, RuPay, FASTag); drives technology adoption at ecosystem level.
• SEBI: Regulates fintech in capital markets — algorithmic trading, robo-advisory, and tokenised securities fall within its ambit.
• IRDAI: Regulates InsurTech (AI-driven underwriting, claims processing, parametric insurance); issued sandbox regulations for InsurTech players.
• IFSCA (International Financial Services Centres Authority): Regulates fintech in GIFT City IFSC — a key venue for cross-border tokenised assets and global fintech partnerships.

Economic Dimensions

• India's fintech sector contributes significantly to GDP and employment; the 9,000+ fintech companies employ an estimated 400,000+ technology professionals directly.
• Asset tokenisation could unlock trillions of rupees in illiquid assets (real estate, SME trade receivables, infrastructure bonds) by enabling fractional ownership and secondary market trading — dramatically improving capital market depth.
• Agentic AI in credit (automated underwriting using alternative data — telecom records, UPI behaviour, GST filings) can extend formal credit to the estimated 190 million credit-underserved MSMEs — the largest financial inclusion opportunity in India.
• Banking & Financial Exam Angle: The Account Aggregator (AA) framework (RBI, 2021) enables consent-based financial data sharing — the essential infrastructure for Agentic AI credit decisions. AA is built on financial data standards (FIP-FIU model) and is SEBI, IRDAI, and PFRDA-regulated alongside RBI.

Challenges

• AI accountability gap: When an Agentic AI makes a wrong credit decision, denies a claim, or executes an erroneous transaction, it is unclear whether liability rests with the bank, the AI vendor, or the model developer — regulators globally are still designing accountability frameworks.
• Tokenisation interoperability: Multiple proprietary blockchain-based tokenisation platforms risk creating fragmented "walled gardens" rather than an open, interoperable market. RBI's framework must mandate common standards.
• Digital literacy and trust: Expanding fintech to the last mile requires not just connectivity but digital literacy — India's 2026 FI-Index score of 70 reflects a "quality" gap that technology alone cannot close.
• Cybersecurity: Agentic AI systems are attractive targets for adversarial attacks — prompt injection, model poisoning, and identity fraud targeting AI financial agents. Robust security frameworks are needed.

Way Forward

• NITI Aayog's Data for Development and Responsible AI papers recommend a Regulatory Sandbox Plus model — where fintech innovations in Agentic AI and asset tokenisation get supervised deployment with real customers before full licensing, with continuous data sharing with the regulator.
• The 2nd ARC's recommendation for a unified financial regulator is relevant as fintech increasingly blurs the lines between banking (RBI), securities (SEBI), insurance (IRDAI), and pensions (PFRDA).
• India should leverage the G20 Digital Finance working group and the FSB's (Financial Stability Board) fintech frameworks to export its DPI model — UPI, AA, ONDC — as global standards for inclusive digital finance.

Possible Mains Questions

1. "India's fintech revolution has been built on Digital Public Infrastructure (DPI), not on private platform monopolies." Critically evaluate this claim and examine whether tokenisation and Agentic AI will reinforce or undermine this DPI model. (GS-III, 15 marks)
2. Examine the regulatory challenges posed by Agentic AI in India's financial sector. What principles should guide RBI's framework for responsible AI in banking? (GS-III, 10 marks)

FAQ

What is tokenisation of financial assets?

Tokenisation converts rights to a financial asset into a digital token on a blockchain or distributed ledger. For payments, it replaces sensitive card data with a unique token (improving security). For assets, it converts bonds, securities, or real estate into blockchain-based tokens enabling fractional ownership and 24/7 trading. RBI is developing a regulated framework for asset tokenisation in India.

What is Agentic AI in finance?

Agentic AI refers to AI systems capable of autonomously executing multi-step financial tasks — processing loan applications, executing trades, onboarding customers, or managing portfolios — without human intervention at each step. Unlike chatbots (which answer questions), Agentic AI can act. RBI's GFF 2026 guidelines require human-in-the-loop for high-value decisions and full accountability to remain with the regulated bank.

What is India's Financial Inclusion Index (FI-Index)?

The FI-Index is an annual composite index published by RBI measuring financial inclusion across three dimensions: Access (35%), Usage (45%), and Quality (20%). It ranges from 0 to 100. India's FI-Index stood at 70.0 as of March 2026, up from 67.0 in March 2025, reflecting continued progress driven by UPI, Jan Dhan, and Business Correspondent (BC) network expansion.

Further Reading

• RBI Annual Report 2025–26 — Financial Inclusion chapter: rbi.org.in
• NPCI — Digital Payments Dashboard: npci.org.in
• NITI Aayog — Responsible AI for All (2021)
• Digital Personal Data Protection Act, 2023: indiacode.nic.in