NPCI, Payment Apps Ask for Relaxation in DPDP Rules Over Consent Requirements
The National Payments Corporation of India (NPCI) and leading digital payment apps like Google Pay, PhonePe, and Amazon Pay have reportedly asked the government to exempt them from certain rules under the Digital Personal Data Protection (DPDP) Act. These platforms are concerned about the rule that requires user consent for every transaction, including recurring payments like subscriptions and auto-debits.
According to a report by The Economic Times, these companies made formal requests to the Ministry of Electronics and Information Technology (MeitY). They argue that applying consent requirements to every single transaction could make the process costly, time-consuming, and technically complex — especially for smaller firms and startups that may not have the infrastructure to handle these demands.
Consent Requirement May Disrupt Recurring Payments
The government released the draft rules for the DPDP Act on January 3, inviting public feedback. The government first set February 8 as the deadline for suggestions, but later extended it to March 5 because many people showed interest and the topic was complex.
Under the draft rules, data fiduciaries (organizations that collect and handle personal data) must clearly inform users and ask for their permission before using any personal data. The government introduced this rule to protect people’s privacy and to give them more control over their personal data.
Once the rules are finalized, users can withdraw their consent anytime. If someone misuses their data or violates the consent rules, users can file complaints with the newly formed Data Protection Board of India.
Industry experts believe that while the law is an important step for user privacy, it should also consider the operational challenges faced by digital payment platforms — especially when handling thousands of transactions every second.
The NPCI and fintech players are now waiting for MeitY’s response, hoping for flexibility in the final version of the rules to ensure that digital payments remain smooth and uninterrupted for millions of Indians.
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