RBI chief calls for data protection as fiduciary duty in fintech sector

The Reserve Bank of India is emphasizing the importance of data stewardship as it builds foundational digital infrastructure for the country's evolving financial services ecosystem. RBI Governor Sanjay Malhotra stressed that fintech companies must recognize their obligation to protect customer information with the same care that fiduciaries apply to managing client assets.

Malhotra's remarks underscore growing regulatory focus on how financial technology firms handle sensitive personal and financial data. As India's digital payments and fintech sectors expand rapidly, concerns about data security, privacy breaches, and unauthorized use of customer information have intensified among regulators and consumers alike.

The RBI's push for stronger data governance reflects a broader regulatory approach aimed at balancing innovation with consumer protection. By positioning data protection as a fiduciary responsibility rather than merely a compliance requirement, the central bank is signaling that fintech firms must embed safeguards into their operational culture.

The digital public infrastructure being developed by the RBI is intended to support the next generation of financial services while maintaining robust oversight standards. This framework is expected to guide how both traditional financial institutions and fintech companies approach data management, security protocols, and customer trust in an increasingly digital financial ecosystem.