Cybersecurity Measures

Finance Minister Reassures Safety of Customer Data with Account Aggregators in India

Indian Finance Minister, Nirmala Sitharaman, has provided reassurance regarding the security of customer data shared with account aggregators (AAs) in the country. Addressing concerns about the relatively slow progress of the AA scheme, Sitharaman expressed her desire for a more accelerated pace, citing the possibility of improved awareness campaigns or the need for technological simplification.

During the ‘DATE with Tech’ event, Sitharaman acknowledged the involvement of both public and private banks in the account aggregators’ initiative. She noted that banks’ participation has been beneficial and emphasized the importance of enhancing their enthusiasm to ensure widespread customer reach.

While acknowledging the positive impact of banks’ engagement in the AA framework, Sitharaman also highlighted the potential for further improvement. She encouraged efforts to raise awareness and simplify technology to optimize the functioning of account aggregators.

The account aggregator framework in India is designed to facilitate secure and consent-based sharing of financial data between financial institutions with the customer’s permission. This initiative aims to empower customers with better control over their financial information and streamline processes such as loan approvals, reducing the need for repetitive documentation.

Sitharaman’s statement underscores the government’s commitment to ensuring the privacy and security of customer data in the evolving landscape of digital financial services. As the financial sector continues to embrace technological advancements, maintaining robust cybersecurity measures and promoting awareness will be crucial for fostering trust and accelerating the adoption of innovative financial solutions.

_{Repurposed article originally published in the Indian Express}