The State Bank of India (SBI), the country’s largest public sector bank, has urged microfinance institutions (MFIs) to pay special attention to data privacy and cybersecurity issues. SBI Managing Director, Alok Kumar Choudhary, highlighted the need for these institutions to deal with the large volumes of customers’ data responsibly while continuing their digital journey.
Choudhary emphasized the importance of integrating with evolving regulations, particularly in light of data privacy laws. He stressed that an action plan should be in place to address cybersecurity and privacy concerns surrounding the significant amount of data handled by MFIs.
Furthermore, Choudhary called for a shift from financial literacy to financial education, stating that educating the individuals delivering financial services on the ground is crucial. He underscored the fiduciary responsibility of banks and MFIs and emphasized the necessity of thoroughly understanding and complying with regulations.
Regarding SBI’s involvement in the government’s financial inclusion drive, Choudhary mentioned that SBI alone has accounted for 36% of the total accounts opened under the Pradhan Mantri Jan Dhan Yojana. This initiative has resulted in the opening of over 50 crore bank accounts, with outstanding deposits exceeding ₹2.03 lakh crore. SBI has also enrolled 32% of the total subscribers under the Atal Pension Yojana, which currently has 5.10 crore subscribers.
The call for prioritizing data privacy and cybersecurity aligns with the increasing importance of protecting customer information and upholding regulatory standards. The rise of digital transactions and the growing reliance on technology in the financial sector necessitate a proactive approach to safeguarding data.
