Finance Minister Nirmala Sitharaman has characterized artificial intelligence as a 'double-edged sword' that can strengthen fraud detection while enabling sophisticated cyber-attacks. Speaking at the Global Fintech Fest 2026, Sitharaman warned that agentic AI, which can autonomously execute actions, could amplify operational and systemic risks because errors, fraud and market shocks could spread at machine speed. As reported by The Economic Times, she emphasized that AI acts as a double-edged sword - it helps us spot fraud faster, but it also allows attackers to automate larger, more sophisticated cyber-attacks. The Finance Minister discussed with the Reserve Bank of India whether emerging technologies could be regulated without constraining innovation, asking 'Is there a way in which we can do a soft touch regulation… without affecting the innovative threshold?'
Finance Minister Nirmala Sitharaman has urged the Reserve Bank of India to accelerate work on the digital rupee, saying innovation in tokenisation, agentic AI and quantum computing must be balanced with trust, resilience and systemic stability. Speaking at the seventh edition of GFF 2026 in Mumbai on September 11, Sitharaman emphasized the need for the central bank to strengthen India's digital rupee platform and boost wholesale and retail CBDCs. The Finance Minister's comments came as part of broader discussions about Agentic AI, tokenisation, and quantum computing under the theme "Potential to Impact: Agentic AI, Tokenisation, Quantum – Trusted, Connected, Global Systems for Inclusive Finance." Sitharaman highlighted India's progress, stating that the country is experiencing its demographic dividend in real time and has built the world's most powerful digital public infrastructure with UPI processing billions of transactions.
Finance Minister Nirmala Sitharaman has called upon technology companies to promote a federated industry platform to give India's technology sector a stronger collective voice in global markets and regulatory discussions. Speaking at the Global Fintech Fest 2026, Sitharaman said there may be merit in considering a federated industry platform that brings together the broader Indian technology ecosystem. As reported by The Economic Times, such a platform should not speak over individual companies but provide the sector with 'a credible collective voice internationally'. The Finance Minister emphasized that the platform could engage foreign governments and regulators early, before regulatory positions harden and barriers are erected, giving the sector a more effective voice in international discussions. The proposed body could work towards interoperable standards, share cybersecurity practices and give Indian companies a collective voice as global technology rules take shape.
Sitharaman has called for greater coordination among financial regulators, competition authorities, data protection authorities and cybersecurity agencies to ensure activities do not escape oversight. As reported by The Economic Times, she emphasized that responsibility for AI deployment cannot be left solely to technology teams and called for boards, senior management and regulators to understand where AI is being deployed, what decisions it influences, the data it relies on and the potential consequences if systems fail. The Finance Minister stated that 'AI may assist judgment, but responsibility must remain human and institutional' and warned that higher-risk applications would require stronger review, explanation and appeal mechanisms. She also backed greater self-regulation by fintech and technology firms operating outside the traditional regulatory perimeter, saying 'Where the regulator's writ ends, your own standards must begin'. Sitharaman reminded financial regulators, competition authorities, data-protection authorities and cyber-security agencies to have 'a clear understanding of their respective responsibilities and a reliable mechanism for coordination'.
Sitharaman hit back at critics who question the sustainability of India's growth, dismissing them as 'naraz fufajis' who continue to question whether India's growth can keep pace with its youth. As reported by The Economic Times, she argued that young Indians were instead 'building platforms, scaling enterprises' and turning the country's median age into a competitive advantage on the path to 2047. Her comments reflect broader concerns about who from the global AI industry will stand up and reassure the public that safeguards are keeping pace with technological advancement, with the Finance Minister questioning 'who will demonstrate that safeguards are actually keeping pace with the speed?' Sitharaman emphasized that the real choice is between responsible adoption, well-managed adoption and warned against responding to AI risks by avoiding the technology altogether, stating that institutions that fail to adopt AI could become less competitive. She also warned that 'It is our responsibility to build the right guardrails so that greater speed also builds greater trust. Efficiency and safety should not be competing objectives; good institutional design must make them mutually reinforcing'.
