Fintechs must treat data as fiduciary duty, not business asset, says RBI Governor Sanjay Malhotra
RBI Governor Sanjay Malhotra stated that fintech companies must regard user data as a fiduciary responsibility, rather than merely a business asset. He emphasized that trust is fundamental for the widespread adoption and long-term sustainability of the financial system. Malhotra urged growing firms to embrace systemic responsibility beyond their balance sheets, highlighting operational resilience and cybersecurity as critical for scaling their operations.
What this means
This reinforces the RBI's stringent stance on data governance and customer protection within the fintech ecosystem. It signals increased regulatory scrutiny on how fintechs collect, store, and utilize user data, pushing them towards more robust data security frameworks and ethical data practices. Non-compliance could lead to regulatory actions and reputational damage.
Most affected: Fintechs, Digital Lenders, Payment Aggregators
Key takeaway: Fintech firms should review their data governance, privacy policies, and cybersecurity measures to align with RBI's emphasis on fiduciary duty, prioritizing customer trust and systemic stability.
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