IDfy Report Uncovers Data Privacy Lapses in Top Indian Banks

Mar 14, 2024: IDfy, a leading Integrated Identity platform in India, has unveiled its latest report, “DPDPA Compliance and Indian Banks,” highlighting critical data privacy shortcomings within the country’s top 10 banks. The report’s aim is to emphasize the importance of the Data Protection Act and encourage organizations to embrace a privacy-centric approach.

Conducted through an analysis of over 25 digital journeys across major banks, the report reveals significant deficiencies in data privacy practices. Most notably, none of the top 10 banks were found to be collecting DPDP-compliant consent, indicating a substantial gap in safeguarding user data.

Among the report’s key findings, it was discovered that 8 out of 10 banks failed to disclose the personally identifiable information (PII) data they collected in their privacy policies. This includes sensitive details such as Account numbers, PAN, and Aadhaar numbers. Additionally, the report highlights the need for data minimization, with banks collecting unnecessary information like religion, caste, and parental consent for minor accounts without proper authorization.

Ashok Hariharan, CEO and Co-Founder of IDfy, stressed the pivotal role of responsible data usage in fostering customer trust. He remarked, “Banks must prioritize data privacy standards to uphold trust and transparency. Our report offers insights into the challenges hindering regulatory compliance, guiding banks towards navigating the complex 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. Alarmingly, none of the banks sought parental consent when processing data for minors, raising concerns about data protection for vulnerable groups.

In response to these issues, IDfy has introduced PRIVY, India’s first Consent Governance platform for digital data protection and privacy under the DPDP Act. PRIVY streamlines user consent processes, facilitating easy review, approval, and adjustments to data permissions, while assisting enterprises in ensuring consent compliance.

The release of this report underscores the urgent need for banks to prioritize data privacy and compliance, reinforcing customer trust and regulatory standards in the digital age.