E-Paper
India’s journey in open banking: Consent, control, and connectivity
This paper is authored by Sauradeep Bag, ORF.
As data drives technological innovation in finance, open banking has gained global relevance. India has advanced in this domain through initiatives like the India Stack, as well as frameworks such as the Data Empowerment and Protection Architecture (DEPA) and the Account Aggregator (AA) framework. Additionally, the Digital Personal Data Protection (DPDP) Act is increasingly shaping India’s open banking landscape. Given the importance of data privacy and security, it is important to assess India’s current standing in open banking. This brief explores India’s progress, key challenges, and how it compares to countries that lead the world in implementing open banking frameworks.
‘Open banking’ is a financial paradigm that enables the sharing of customer-authorised data between banks and third-party providers through the use of secure Application Programming Interfaces (APIs), with data privacy at its core. India is developing its open banking ecosystem through advances in digital infrastructure, regulatory frameworks, and data governance. As the landscape evolves, a number of initiatives are reshaping the access and sharing of financial data.
The ecosystem rests on two fundamental principles: Empowering users with greater control over their data, and preventing misuse by data recipients. Given these priorities, data privacy becomes a pillar of the framework. To understand the evolution of open banking in India, it is essential to examine the country’s approach to data privacy and how it shapes the current landscape of open banking. Understanding this relationship provides insights into both the regulatory framework and the broader implications for financial innovation and user protection.
This paper can be accessed here.
This paper is authored by Sauradeep Bag, ORF.
