Banks, NBFCs see hit to cross-selling

WEIGHED DOWN BY the draft rules under the Digital Personal Data Protection (DPDP) Act, released on Friday, financial sector entities are hoping the final norms will provide them some relief from a potential hit to their cross-selling capabilities.

- SACHIN KUMAR

According to the draft rules, banks and NBFCs will no longer be able to freely share customer data with their subsidiaries. They will be required to obtain explicit consent from customers before sharing such information with subsidiaries.

"The cross-selling of products and services will now become dependent on obtaining customer consent. Banks and NBFCs will need to invest more time in educating customers about how their data will be used responsibly," said Siddharth Vishwanath, Advisory Markets leader, PwC India.