FINTECH AND DATA PRIVACY: INDIA’S LEGAL LAG

AUTHOR – ARYAN NANDA, STUDENT AT AGNEL SCHOOL OF LAW

BEST CITATION – ARYAN NANDA, FINTECH AND DATA PRIVACY: INDIA’S LEGAL LAG, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (10) OF 2025, PG. 522-525, APIS – 3920 – 0001 & ISSN – 2583-2344.

Abstract

India’s financial sector is rapidly evolving through technologies like AI, block chain, and real-time payments. However, existing laws such as the IT Act, 2000 and the DPDP Act, 2023 are not fully equipped to address the challenges these innovations bring. The IT Act remains outdated for current digital systems, while the DPDP Act, though a step toward data protection, raises concerns about government overreach, unclear cross-border data rules, and heavy compliance burdens on startups.

The lack of clear AI regulations in FinTech leads to issues around accountability, algorithmic bias, and misuse of personal data. This paper highlights these gaps and suggests reforms including independent oversight for data exemptions, simplified rules for small FinTechs, and a dedicated legal framework for AI in finance. Strengthening these areas is crucial to ensure user protection while supporting innovation in India’s growing digital economy.