DPDP Act, 2023 and Its Implications on the Banking Sector

India did not have a standalone legal framework to protect digital personal data until 2023. In the year 2023, the Digital Personal Data Protection Act [DPDP Act] was passed which provides a comprehensive legal framework for data privacy, empowering citizens to have a control over their personal data. This stems from the landmark 2017 Supreme Court judgement in the case Puttuswamy v. UoI [(2017) 10 SCC 2]. The Supreme Court held that right to privacy is a fundamental right under the ambit of Article 21. Up until the implementation of the DPDP Act, India relied on the limited data protection guidelines under the IT Act 2000, which was found to be insufficient to cater to the needs of the modern digital economy.