Fintechs Must Treat Data As Fiduciary Duty, Says RBI Governor Sanjay Malhotra
· Business · Economic Times, Indian Express
Reserve Bank of India Governor Sanjay Malhotra stated that fintechs and financial institutions must treat user data as a fiduciary duty rather than a business asset. Speaking in Mumbai at the Global Fintech Fest, Malhotra emphasized that consumer data must be collected with a clear purpose and used strictly within the consent provided. He warned that treating consumer data as a monetizable asset first erodes trust, which causes irreversible damage to financial firms. Malhotra also reiterated the risks of adopting artificial intelligence, including bias, exclusion, cybersecurity threats, and the erosion of human judgment. He noted that many fintechs operate outside prudential regulation to ensure proportionate rules do not stifle innovation.
Why it matters
This directive directly impacts Indian fintech startups and digital lenders by raising compliance standards around data privacy and consumer trust.
Read the original report — Economic Times
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