Unleashing Potential: How Mythos Represents Both a Threat and a Game-Changing Opportunity for the Fintech Ecosystem, Warns DFS Secretary M. Nagaraju
M. Nagaraju, the Secretary of the Department of Financial Services (DFS), addressed the increasing presence of AI systems like Claude Mythos during the PICUP Fintech Conference & Awards 2026 in New Delhi, highlighting their dual nature as both risks and opportunities for the financial sector. He emphasized the urgent need for responsible technology adoption, coupled with enhanced cybersecurity and data privacy measures. “Mythos is a threat and opportunity for the fintech ecosystem,” he stated, underscoring the Centre’s and regulatory bodies’ commitment to thoroughly exploring the implications of such technologies on finance.
Nagaraju noted that India’s financial sector is in the midst of a significant transformation, driven by a fundamental shift in how financial services are accessed and delivered to consumers. He articulated that the future of this sector hinges on striking a balance between innovation, resilience, and inclusivity.
Despite global economic challenges-including geopolitical tensions, supply chain disruptions, high interest rates, and overall uncertainty-Nagaraju affirmed that India remains a beacon of growth in the global economy. He outlined the nation’s aspirations to achieve a $5 trillion economy, fueled by robust macroeconomic factors, infrastructure development, an expanding manufacturing sector, and diversified supply chains.
According to recent projections, India’s real GDP growth for 2025-26 is estimated to be 7.6%, up from 7.1% in 2024-25. Private final consumption expenditure is predicted to grow by 7%, marking the highest share of GDP since 2012. Gross fixed capital formation has also risen by 7.8%, maintaining a steady 30% share of GDP.
Nagaraju further highlighted the improved health of the banking sector, citing a gross non-performing asset (NPA) ratio of 2.2% for scheduled commercial banks as of September 2025, with net NPAs reaching a historic low of 0.5%. Additionally, bank credit growth saw a significant year-on-year increase of 14.5% as of December 31, 2025, compared to 11.2% the previous year.
In the realm of financial inclusion, he praised India’s achievements, where nearly 580 million accounts have been opened under the Pradhan Mantri Jan Dhan Yojana, over half of which belong to women. The program has led to deposits surpassing ₹3 trillion, alongside the issuance of over 400 million RuPay cards. Other significant initiatives include the Pradhan Mantri Jeevan Jyoti Bima Yojana and Pradhan Mantri Suraksha Bima Yojana, which collectively have enrolled over 840 million beneficiaries. Furthermore, the Pradhan Mantri MUDRA Yojana has sanctioned loans exceeding ₹39 trillion, and the Stand-Up India scheme has disbursed over ₹41,000 crore.
Nagaraju credited India’s Digital Public Infrastructure-anchored by Aadhaar, the Unified Payments Interface (UPI), and the Account Aggregator framework-as a crucial component propelling growth and inclusion. In March alone, UPI processed over 22 billion transactions, valued at more than ₹29 trillion, accounting for 81% of retail digital payment transactions in 2024-25.
On the topic of artificial intelligence, he discussed the potential for AI-driven underwriting techniques that evaluate creditworthiness through alternative data sources, such as digital transaction histories and GST records. He asserted, “AI has the potential to make financial inclusion not just socially desirable, but commercially sustainable.”
However, Nagaraju urged vigilance against cybersecurity threats, data privacy issues, and trust deficits that could hinder progress. He cautioned, “The next phase will test our ability to integrate advanced technologies responsibly, secure systems against evolving threats, protect citizen data, and expand access while maintaining stability.” These insights epitomize the balancing act the financial sector must perform as it navigates this evolving landscape, emphasizing the necessity for both innovation and robust safeguards.
Original Source: https://www.livemint.com/news/mythos-is-a-threat-and-opportunity-for-the-fintech-ecosystem-says-dfs-secretary-m-nagaraju-11776943189385.html
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Publish Date: 2026-04-23 18:22:00
