India’s fintech surge, driven by cloud computing, has raised regulatory concerns over know-your-customer (KYC) processes and fraudulent activities. The growth of neo-banking, facilitated by platforms like Amazon Web Services, has led to increased financial inclusion but also raised risks of fraud due to sketchy individual KYC data. The use of virtual addresses for merchants and nodal accounts has added complexity, prompting the Reserve Bank of India (RBI) to take regulatory actions, freezing Paytm’s banking business and instructing Visa to halt certain transactions. The RBI’s concerns highlight the need for stronger KYC processes, improved payment infrastructure, and fair competition in the fintech sector.