Union Finance Minister Nirmala Sitharaman stated that banks in the country operate under a strict legal and regulatory framework to ensure the safety and confidentiality of customer data. The Minister was responding to supplementary questions during Question Hour in the Lok Sabha today. Ms. Sitharaman said that under the Know Your Customer (KYC) framework and guidelines issued by the Reserve Bank of India, banks are required to maintain the confidentiality of customer information.
She informed that there are five different acts, and banks must comply with these laws. This includes the State Bank of India Act, the Banking Companies Act, the Regional Rural Banks Act, the Credit Information and Companies Act, and the Public Financial Institutions Act. The Minister said that data is collected only on a need-to-know basis and shared with authorities when required. Ms. Sitharaman stated that in cases of fraud or unauthorized data sharing, complaints can be made to the RBI or relevant authorities, which will take necessary action upon receiving such complaints.