<h1>RBI Deputy Governor Highlights Fintech's Impact on Banking; Stresses Need for Adaptive Regulation to Ensure Stability.</h1> The Deputy Governor of the Reserve Bank of India discussed the transformative impact of fintech on financial services, highlighting benefits such as reduced transaction costs, enhanced connectivity, and improved financial inclusion. However, he emphasized the limitations of technology in replacing traditional banking functions, particularly in bridging temporal gaps in financial intermediation. The speech underscored the need for adaptive regulation to manage fintech's rapid evolution, ensuring customer protection and system stability. The Reserve Bank's initiatives, including regulatory sandboxes and innovation hubs, aim to foster responsible digital innovation while addressing challenges like cybersecurity risks and digital fraud. The focus is on balancing technological advancement with regulatory oversight to support economic growth.