Since financial systems deal with a vast amount of data, the privacy of users should be protected from private contracts, suggested T Rabi Sankar, executive director at the Reserve Bank of India, on Tuesday. “If I want to use a particular app, it can not be that I have to sign the terms and conditions of the app and that is the basic contract. We can not ensure privacy of an individual through such bilateral contracts, there has to be a clear law,” Sankar said, while speaking at the Indian government’s Raise 2020 Summit (Responsible AI for Social Empowerment, 2020). He was making his remarks in a personal capacity. Sankar was speaking on a panel which was discussing how data and artificial intelligence can help the financial system, and he was joined by the likes of NPCI CEO Dilip Asbe, UIDAI’s Vivek Raghavan, and Mastercard’s Ashutosh Chadha, among others. Framework to deal with data and AI in the financial services sector In order to manage the huge amount of data that the financial services sector deals with, Sankar suggested that the following principles be adhered to, apart from ensuring data privacy: 1. Legality, transparency, efficiency of data sourcing “The basic principle should be that there is a clear legal protection to a data creator when that data is used. When I put my photograph in, let’s say, a social media platform, how to ensure that that photograph is not misused for illegal activities, should basically be provided in law, particularly…
