DPDPA Compliance for Fintech Companies
Navigating RBI, SEBI, and DPDPA Overlap
"Fintech operates at the intersection of financial regulation and data protection. Both must be satisfied—neither trumps the other."
Fintech companies face unique compliance challenges: DPDPA requirements must be harmonized with RBI, SEBI, and IRDAI regulations. This guide navigates the overlapping regulatory landscape.
1Regulatory Overlap Analysis
DPDPA does not override sectoral regulators—both apply.
- RBI data localization: Payments data must be stored in India
- DPDPA: No general data localization requirement
- Resolution: Store payments data locally, may transfer other data
- SEBI KYC requirements: May conflict with data minimization
- Resolution: Process KYC data under Section 7(c) legal obligation
2Fintech-Specific Consent Challenges
Financial services consent must satisfy both DPDPA and sectoral requirements.
- Account Aggregator consent: Separate from DPDPA consent
- Credit bureau consent: Dual consent may be required
- Insurance underwriting: Health data requires explicit consent
- Investment advisory: Profiling consent under DPDPA
Fintech Complexity: A single customer onboarding may require 3-4 separate consent captures under different regulatory regimes. UX design is critical.
Key Takeaways
DPDPA and sectoral regulations apply simultaneously
RBI data localization survives DPDPA enactment
Sectoral legal obligations provide Section 7(c) processing basis
Multiple consent captures may be required for single transaction
Harmonized privacy architecture reduces compliance burden
Statutory References
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