India’s Fintech Industry: Navigating the Maze of Financial Data Security
A Changing Landscape in India’s Fintech Sector
India’s fintech industry has witnessed significant growth, becoming the third-largest fintech ecosystem in the world, with over 6000 companies [Adhikari, 2022]. This dynamic sector caters to various business models and has instrumental in bringing financial services to millions. However, as data becomes the new oil, securing financial information is paramount [Adhikari, Conventus Law].
The Imperative of Financial Data Security in India’s Fintech Industry
- India’s fintech industry growth
- Digital transactions increasing
- Significant cyber threats
- Vast population and rapidly evolving digital economy
Regulatory Initiatives
The Reserve Bank of India (RBI)
In March 2021, the RBI released the Master Circular on Cybersecurity, setting strict guidelines [RBI, 2021]:
- Robust cybersecurity systems
- Protection of customer data
Indian Government and the Personal Data Protection Bill (PDPB)
- Aim: Protect privacy, provide data control, and establish a data protection authority
- Parliamentary review
- Global privacy standards compliance if passed [Indian Prime Minister’s Office, 2021]
Challenges
- Smaller fintech companies’ resource constraints
- Lack of cybersecurity awareness
Ongoing Efforts
- Increasing awareness
- Collaborative initiatives
- Regulatory support
References
- Balaram Adhikari, “India - Interaction Of Fintech With Privacy And Security: A Tale Of Changing Priorities.”, Conventus Law, June 14, 2022, https://conventuslaw.com/featured-content/india-interaction-of-fintech-with-privacy-and-security-a-tale-of-changing-priorities/
- Reserve Bank of India, “Master Circular: Cyber Security Framework.”, March 22, 2021, https://rbi.org.in/scripts/Announcements.aspx?headline=Master%20Circular%20on%20Cyber%20Security%20Framework&yd=2021
- Indian Prime Minister’s Office, “Personal Data Protection Bill, 2021.”, [Accessed on June 18, 2022], https://pib.gov.in/PressReleasePage.aspx?PRID=1755631
About the Author
Balaram Adhikari is a legal contributor at Conventus Law. His areas of interest include fintech innovation, privacy and data protection, and artificial intelligence. Balaram has authored numerous articles on these topics for various publications.