Page 49 - Banking Finance August 2025

ARTICLE

Privacy Enhancing

Technologies (PETs) :

Tools to usher in a new

era of Secure Banking

Abhijit De
Chief Manager (Research)
State Bank Academy
Gurgaon

Majority of entities use PETs alongside other organizational and legal tools for implementing the
data governance objectives of the organization. These technologies often complement one another
and often rely on each other to function. Like ingredients in a recipe, different PETs can be combined
to fulfill specific privacy and data protection objectives of an organization.

T he banking sector in India has witnessed responsible use of "personal data" at various stages of the
data-use lifecycle. These tools act as enablers for effective
unprecedented levels of technology integration
during the last two decades. The digital
transformation has been profound, marked by the implementation of the principles of data protection and aim
at minimizing the risk of misuse of personal data. It is
proliferation of mobile banking, UPI transactions and digital anticipated that huge investments in PETs will be required
lending activities. Technology has helped banks reach even to be made by banks and other financial institutions once
the remotest part of the country. A large section of the the government finalizes the operational rules/guidelines
population which was considered un-bankable could be and timelines for compliance under DPDPA.
brought under the fold of formal banking because of the use
of technology. This piece of write up aims to offer a non-technical
introduction to PETs and highlight their key features. It also
As use of technology in banking continues to grow, concerns discusses some popular as well as emerging PETs and how
around increased risk to consumer data privacy and security they are gaining recognition as compelling value proposition
have intensified. Addressing these concerns has become a for banks in addressing data privacy concerns. These insights
central focus for bank management. Added to this, banks will help provide a basic understanding of PETs and their
in India also face the imminent challenge of meeting the growing relevance in ensuring secure, compliant and
requirements of India's flagship privacy law -The Digital customer-centric banking in the digital age.
Personal Data Protection Act (DPDPA),2023.
Understanding Privacy Enhancing
To effectively manage the complexities of data protection
norms, major banks are taking help of technology solutions Technology (PET)
such as Privacy Enhancing Technologies (PETs). PETs are a Imagine a scenario wherein you have made a cash
bunch of technology tools which help in ensuring secure and withdrawal of Rs 5000 from your bank account no-

44 | 2025 | AUGUST | BANKING FINANCE