Banking in the Era of "Data Privacy": Impact of Digital Personal Data Protection Act (DPDPA) on the Banking Industry

In modern world, data is a valuable asset which helps in the revenue generation process of a company/organization.

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Hence, it needs to be handled responsibly and protected from potential misuse. In the context of business, the DPDPA intends to protect customer information and has the potential to disrupt the way business houses function in terms of processing personal data.

"Data Protection" is the new buzz phrase among the stakeholders of the Data Processing industry. The concept has gained importance in recent years, particularly in the context of growing personal data breach incidents over the years and consequent use and misuse of such unauthorized personal data. A watershed moment in the domain of personal data protection in India has been the passage of Digital Data Protection Act, 2023 (DPDPA). It provides legal recognition to an individual's right to protect personal data. It aims to provide the common man full control over his personal data.The Act grants certain rights to Data Principal (individual to whom the personal data relates) and at the same time mandates specific obligations for entities that are responsible for deciding the means and objective of processing personal data"(Referred to as "Data Fiduciary"in the Act).

In modern world, data is a valuable asset which helps in the revenue generation process of a company/organization. Hence, it needs to be handled responsibly and protected from potential misuse. In the context of business, the DPDPA intends to protect customer information and has the potential to disrupt the way business houses function in terms of processing personal data. The impact of DPDPA will be felt across industries; be it Information Technology, Manufacturing, Trading, Health Care, Banking, Financial Service & Insurance (BFSI), Education or any other.