IDfy Report Reveals Alarming Data Privacy Gaps in Top Indian Banks

Mumbai, 13th March 2024: IDfy, India's foremost Integrated Identity platform, has unveiled a comprehensive report shedding light on data privacy and compliance issues within the banking sector. Titled "DPDPA Compliance and Indian Banks," the report scrutinizes the data privacy practices of the top 10 banks in India, urging for a paradigm shift towards privacy-centric operations.

Based on an analysis of 25+ digital journeys across these banks, the report delivers concerning findings. Shockingly, none of the top 10 banks were found to be collecting DPDP-compliant consent, signaling a glaring gap in data privacy practices.

Among the key revelations, the report highlights that 8 out of 10 banks fail to disclose the personally identifiable information (PII) data collected in their privacy policies, including sensitive details like Account numbers, PAN, and Aadhaar numbers. Moreover, the study underscores the urgent need for data minimization, citing instances where banks unnecessarily gather information such as religion, caste, and even parental consent for minor accounts without proper authorization.

Ashok Hariharan, CEO and Co-Founder of IDfy, emphasized the critical role of responsible data usage in maintaining customer trust. He stated, "As custodians of sensitive customer information, banks must prioritize data privacy standards to foster trust and transparency. Our report provides a detailed examination of the obstacles hindering regulatory compliance, guiding banks towards navigating the intricate landscape of data compliance."

Furthermore, the report exposes ambiguity in banks' cookie collection practices, with 9 out of 10 banks lacking a cookie consent banner. Notably, none of the banks obtained parental consent while processing data for minors, raising significant concerns about data protection for vulnerable demographics.

In response to these challenges, IDfy has launched PRIVY, India's sole Consent Governance platform for digital data protection and privacy in accordance with the DPDP Act. PRIVY streamlines user consent processes, facilitating easy review, approval, and adjustments to data permissions, while guiding enterprises towards ensuring consent compliance.

The release of this report underscores the pressing need for banks to prioritize data privacy and compliance to uphold customer trust and regulatory standards in the digital era.