Impact on the General Public
Enhanced Data Privacy
Consumers have more control over their personal data, which leads to trust in digital financial services. As regulations tighten, data misuse and unauthorized sharing will greatly reduce.
Increased Service Costs
This means that in the future, Fintech firms may shift a part of the compliance costs to consumers through charging them higher fees.
Potential Innovation Slowdown
New firms, which are usually innovators, may fail to manage the costs of compliance with the expenses on research and development. This may slow down progress in the world of financial technologies.
The Bigger Picture
The DPDP Act is the regulation of innovation in the growing Fintech sector in India while at the same time protecting the rights of its citizens to privacy. However, this regulation is a move towards a safer and more reliable online environment despite the numerous hurdles present. Fintech firms need to respond swiftly to the change as they will need to protect their market share in a world that is becoming more conscious of privacy.
