Fintech firms should not compromise on data privacy: FM Nirmala Sitharaman

Finance Minister Nirmala Sitharaman on Tuesday said that data privacy should not be compromised and client data should be safeguarded as more and more Indians using digital mode of payment. The value of digital transactions had jumped to Rs 6 lakh crore in January to August 2021 from Rs 4 lakh crore in 2020 and Rs 2 lakh crore in 2019, the minister said while addressing the fintech industry at Global FinTech Fest 2021. The basic respect for privacy, as the guiding principle is well appreciated, she added. She also highlighted that safeguarding client data is the backbone to bringing trust.

India prime destination for digital businesses

A report titled UN principles for responsible digital payments, was launched with principles guiding the government, users, industry and businesses, in the event. It also placed emphasis on including women and their participation in fintech.

Sitharaman further said that UN principles for responsible digital payments are being launched are the need of hour and all of us need to understand that in our desire to bring in an interoperable system, which has to be pushed ahead because of the transparency virtues that it carries, and shouldn’t be in a hurry to compromise on any one of these features.

The minister said the fintech adoption rate is 87% in India, as against the global average of 64%. She also added that India is the prime destination for digital activities, digital payments.