Author: CS Sachin Kotian
Published in: Taxmann
The increasing use of data-driven technologies has reshaped the operations of Non-Banking Financial Companies (NBFCs), making data protection a key regulatory priority. With the implementation of the Digital Personal Data Protection Act, 2023, NBFCs must strengthen their compliance frameworks for handling personal and financial data.
The Act requires NBFCs to obtain clear consent for data collection, ensure lawful processing, and implement strong security safeguards to prevent data breaches. It also introduces greater accountability through internal governance mechanisms, risk management practices, and grievance redressal systems.
As NBFCs increasingly rely on digital platforms and analytics, compliance with the DPDP Act is essential to manage regulatory risks and safeguard customer trust.
