New Delhi, Feb. 21 -- India's rapid digital financial expansion is fuelling both opportunity and risk, with rising unsecured debt and speculative trading posing new challenges for the financial system, Reserve Bank of India (RBI) deputy governor M. Rajeshwar Rao warned Friday.

While technology has deepened financial inclusion, Rao said, concerns have emerged over unchecked borrowing and speculative investments that could leave individuals and institutions vulnerable.

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"(Just as) the presence of too much light can lead to blindness, we must be aware of the risk of reckless financialization," Rao said at the Indian Institute of Management Kozhikode-National Stoc...