Credit history should not be considered sensitive personal data as it would lead to higher data protection and compliance costs, the Digital Lenders Association of India (DLAI) said.
“While there will certainly be an increase in compliance cost (for tech startups in lending segment), some legislation is clearly required and we don’t expect the cost to be prohibitive as long as some of the industry recommendations are accepted,” said Shivashish Chatterjee, co-founder, DMI Finance, a non-banking financial company (NBFC), in an emailed response.
DMI Finance serves as an NBFC partner to online lenders such as MoneyTap and ZestMoney, and is also a member of DLAI.
