Customer privacy, data protection are non-negotiable: RBI Deputy Governor

RBI Deputy Governor M. Rajeshwar Rao has recently said that technological innovation in banking is of paramount importance but cannot be pursued at the cost of customer privacy and data protection which are non-negotiable.

Rao, while speaking at a webinar on Open Banking organised by Tata Consultancy Services in association with the Embassy of India in Brazil, said, “We must generate trust amongst the customers that their data is safe and secure in all their financial relationships with regulated entities and for that – innovation and regulation should go hand-in-hand.”

He also added, “All stakeholders need to appreciate the fact that while technological innovation is of paramount importance, the customer privacy and data protection are non-negotiable”.

RBI Deputy Governor stated that “We must generate trust” amongst the customers that their data is safe and secure in all their financial relationships with regulated entities and for that – innovation and regulation should go hand-in-hand.

Rao noted that in contrast to the open banking initiatives witnessed in some countries, India has embraced an approach where both the regulator and the market have collaborated for the development of the open banking space.