DPDP Act impact on Banking, Financial Services & Insurance

November 7, 2023

Anahad Narain

Founder's Office

How will DPDP Act impact the Indian BFSI sector?

Summary

India's new data protection law mandates explicit consent for personal data use.

BFSIs must prepare to balance the obligations of multiple regulators, including RBI, SEBI, and IRDAI, alongside the new data protection requirements.

Failure to comply can bring heavy fines up to 250 Crore Rupees.

Integrating Consent Managers, overhauling data practices, and staying agile in the face of evolving data governance laws are now critical moves for every BFSI player.

What is the DPDP Act, and how does it affect BFSI?

The DPDP Act has outlined new rules for digitally handling personal data. For BFSIs, the DPDP Act marks a big shift in data governance, mandating CONSENT for collection and usage of personal data.

DPDP Act impact on Banking, Financial Services and Insurance - illustration — The first consent notice is broad and unclear therefore non-compliant with the DPDP Act

Penalties for non-compliance can reach up to ₹250 crore. BFSIs must adopt consent management, implement purpose-based data governance, and empower customers to withdraw consent easily.

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DPDP Act impact on Banking, Financial Services & Insurance

Summary

What is the DPDP Act, and how does it affect BFSI?

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