It's imperative for banks to use PETS

A recent report by a global consultancy strongly recommends that Indian banks should make use of PETs, or Privacy-Enhancing Technologies:

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In June 2025, the global consulting firm Protiviti came out with a report suggesting the need for Indian banks to adopt Privacy-Enhancing Technologies (PETs) mainly to comply with the Digital Personal Data Protection Act (DPDPA) 2023 and manage privacy risks. The firm highlighted that in view of banks handling sensitive data, they are likely to be classified as ‘Significant Data Fiduciaries’, or SDFs, under DPDPA, facing stricter requirements and hence the need to adopt PETs. The report recommended that Indian banks should also use PETs and AI for tasks such as data discovery and consent management and that they should create positions like Data Protection Officer and invest in privacy training.

The report, titled ‘Navigating DPDPA in Banking: Compliance, Impact, & AI-Powered Strategies for Futureproofing’, was released at the 4th IBA CISO Summit 2025.

PET FOR INDIAN BANKS

The report has listed various PETs for Indian banks, including automated risk evaluation tools, privacy-assured audit logs, differential privacy, federated learning, synthetic data, access control mechanisms, AI-powered record-keeping tools, AI-based breach prevention and end-to-end encryption. Admitting that banks face challenges such as low awareness of PETs, high investment costs and a skill gap in implementing these technologies, the report, however, insists there is no other alternative for banks in fulfilling the terms of DPDPA and in the process build trust and stay competitive.