RBI Data Rules: Is Your Bank's Use of Your Data Safe?

RBI is directing banks and lenders to set up formal data governance frameworks. This means stricter rules on how your financial data is collected, stored, and used — giving you better protection going forward.

Here's what happened: RBI has directed regulated entities — banks, NBFCs, and payment companies — to formally implement data governance frameworks covering how customer data is managed.. Financial data is now treated as a critical organisational asset, meaning institutions must document and control how your loan, account, and transaction data is used.. The move signals RBI's push toward systematic data accountability — institutions can no longer handle customer data without defined policies, oversight, and audit trails..

What you should do: Check your bank's privacy policy online — look for sections on 'data sharing with third parties' and opt out wherever possible.. Review permissions granted to your bank's mobile app — revoke access to contacts, location, or microphone if you never consented knowingly.. If you have applied for loans via fintech apps, request a data deletion or review your data consent terms under India's DPDP Act rights..

Under India's Digital Personal Data Protection Act 2023, you already have the right to request what data a financial institution holds about you — most Indians never exercise this.