Financial sector faces challenges amidst rising data concerns and fraud risks: SBI MD

However, he highlighted that there are challenges and uncertainties associated with this new system.

One significant concern Tewari raised is the lack of regulation for account aggregators. He emphasised the need for guardrails to ensure responsible data usage, as well as clarity on the consent customers give for their data. Tewari expressed apprehension about the unregulated nature of these aggregators, emphasising that every player in the financial space should be subject to oversight.

Tewari expressed concerns about the unregulated nature of account aggregators, stating, "There is a need for proper regulation here, proper oversight, because without which every other player in that chain is regulated except for this."

The conversation also delved into the 59-minute loan initiative by the government and the evolving landscape of online public sector bank services. While Tewari acknowledged the positive impact on financial inclusion, he noted that challenges still exist, particularly in terms of documentation and the need for further integration with digital platforms.

As the financial sector embraces digital solutions, Tewari expressed concerns about the increasing number of frauds. He pointed out that the lack of guardrails around data access has contributed to rising instances of fraud, with customers falling victim to various deceptive tactics. Tewari emphasised the need for a balance between financial inclusion through technology and the associated risks, calling for stricter regulations to safeguard customers.