INDIAN BANKING SYSTEM

The emergence of Financial Technology (FinTech) has significantly redefined the structure and functioning of the Indian banking system. Over the past decade, India has witnessed rapid growth in digital payments, algorithm-driven lending platforms, neo-banking services, and open-banking frameworks. This transformation has been largely supported by public digital infrastructure such as Aadhaar, Jan Dhan Yojana, and the Unified Payments Interface (UPI). While FinTech innovations have enhanced operational efficiency, improved customer outreach, and expanded financial inclusion, they have simultaneously intensified competitive pressures on traditional banks and introduced new categories of regulatory and cybersecurity risks. This research critically evaluates the multidimensional impact of FinTech disruption on Indian banks by synthesizing regulatory reports, academic literature, secondary data, and primary survey findings. The study concludes that FinTech does not merely supplement banking services but structurally alters financial intermediation. Sustainable gains, however, depend on strategic alignment, regulatory balance, and responsible digital integration.