Data privacy should not be compromised when using fintech: FM Sitharaman

Finance Minister Nirmala Sitharaman said on Tuesday that there should be no compromise on data privacy and customer data protection, as a growing number of Indians now use the digital payment method.

Addressing the fintech industry, the minister said the value of digital transactions rose to Rs 6 lakh crore in January-August 2021, up from Rs 4 lakh crore and Rs 2 lakh crore in 2020 and 2019, respectively .

“Data privacy is one of the things that is very important and it is an issue on which there can be a lot of controversial views. However, fundamental respect for privacy… as a guiding principle is well appreciated.

“Protecting customer data is something that I believe is the cornerstone of trust. Unless my data is well protected, I wouldn’t want to go into a scheme of things. So that’s the guiding principle, ”Sitharaman said at“ Global FinTech Fest 2021 ”.

During the event, a report on the “UN Principles for Responsible Digital Payments” was launched, which outlines the guiding principles for government, users and for industry and business. The report also emphasizes the inclusion of women and their participation in fintech.

“I am very impressed that today the United Nations Principles for Responsible Digital Payments are launched. It’s just the need for an hour. We need … each of us to understand that in our desire to put in place an interoperable system, a system that must move forward because of the virtues of transparency it entails, we should not be in a hurry to compromise on any of these characteristics, ”Sitharaman said.

The minister said the fintech adoption rate was 87% in India, compared to a global average of 64%.

“I think India is the prime destination for digital business, digital payments,” she added.