A report from the Centre for Advanced Financial Research and Learning (CAFRAL), affiliated with the RBI, suggests that India’s fintech sector could potentially emerge as a substitute for traditional banking in the near future. The report emphasizes the strong relationship between the United Payments Interface (UPI) and fintech lending, showcasing the complementary nature of digitalization to the traditional banking system. However, it also highlights the need for agile and effective regulation to support growth, ensure financial stability, and protect customer interests in the rapidly evolving digital landscape. CAFRAL’s report underscores the vital role of NBFCs and their adaptation to technological changes in India’s financial system.