Technical innovation in banks is important but it cannot be pursued at the expense of consumer privacy and data security, ”said Reserve Bank Deputy Governor M. Rajeshwar Rao. In a webinar on open banking on 14 April, Tata Consultancy Services (TCS), in collaboration with the Indian Embassy in Brazil, Rao said, “We need to build trust with our customers in all financial transactions with them.” Information and data are secure. For this, both innovation and control need to be conducted simultaneously.
This means open banking
The Reserve Bank of India released Rajeshwar Rao’s speech on its website on Friday. Open banking refers to sharing data with a third party with customers. Third parties have been told about companies that provide better financial transparency options, marketing and cross-selling opportunities to account holders. They do this by creating an app or through the services provided.
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On the one hand, technological innovation is important, but all parties understand that there is no compromise on consumer privacy and data security, Rao said. In the country, RBI and NPCI have jointly designed a payment system like UPI, releasing its App to banks and third party app providers.
