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In our digitalised world, "data is the new oil," signifying the value of personal data for businesses. It drives decisions, personalisation, and innovation. However, with the immense value of personal data comes a pressing need for privacy and security. The Digital Personal Data Protection Act (DPDPA) of 2023 addresses these issues, aiming to protect personal data, empower individuals, and enforce strict data handling standards.
The Act is not just another piece of legislation; it is a game-changer. This Act is all about safeguarding personal data, giving individuals more control over their information, and establishing rigorous data handling standards. It is a landmark step towards ensuring that the data-driven world we live in operates ethically and securely.
DPDPA's influence on the financial services sector is expected to be significant, particularly in light of the sector's regulatory changes, the presence of non-traditional actors, and its digital transformation. The Act serves as the guiding framework for managing digital personal data, delicately balancing the preservation of individual rights with the necessary data processing requirements.
"I believe personal data is sacrosanct and businesses that treat it so, while harnessing and processing this data to gain competitive advantage, will be the ones that will earn consumer trust and loyalty. It is now up to organisations to look at the Digital Personal Data Protection Act 2023 as a business opportunity and create a safe and digital-first #VibrantBharat."
Deepankar Sanwalka, Senior Partner, Grant Thornton Bharat
Personal data has transformed into a valuable asset that powers various aspects of modern business operations. Companies within the financial services sector leverage personal data for:
The highly regulated Financial Services sector faces the challenge of aligning DPDPA 2023 with existing regulations such as the Prevention of Money Laundering Act (PMLA). This intersection calls for carefully considering legal requirements for data collection, retention, sharing with authorities, and compliance roadmap development. Financial firms, accustomed to strict privacy and data protection rules, are likely to have a more mature approach to compliance than other sectors.