Regulations On Data Protection Should Adopt Risk Based Approach, Provide Relaxations For MSMEs Says Assocham
The Delhi High Court on Friday asked Centre and Reserve Bank of India to file response to a plea seeking protection of privacy of the customer by immediately stopping the bank to share the details of the transactions of the customers and borrowers based on PAN.
Mishra, in his plea said that the bank uses credit information companies such as Trans Union CIBIL report as a factor for making decision on granting of the loans, even the decision of the rate of interest charged on the loan depends on the Credit Information Companies.
"It is the matter of real concern that the Central Board of Direct Taxes has not issued any notification in regard of sharing the Permanent Account Numbers and transaction details of the persons by the banks and non banking finance companies to the private company or non government entity," read the plea.
The petitioner told the court that the RBI has no formal agreement with Ministry of Finance, Government of India or Central Board of Direct Taxes in regards to sharing of the Permanent Account Numbers (PAN) and transaction details of the client by the credit institutions such as banks or non banking finance companies to the credit information companies and vice a versa.
He also told the court that sharing of PAN and other transactions with credit rating agencies affects the right to privacy of an individual.
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