[This post has been authored by Vaibhav Parikh, Legal Counsel at ICICI Bank. Views are personal]
The value of online/ mobile banking rose from INR 69.47 billion in 2016-17 to INR 21,317 billion in 2019-20. Providing data access to third-party firms by banks and other financial institutions has proved to be one of the important reasons for such rapid development in online/ mobile banking, since it has allowed for introduction of innovative financial services and products to customers (Basel Committee Report on Open Banking, Page 8); such as seamless payments transmission between accounts at different banks, instant payments using Unified Payments Interface (“UPI”) and aggregation of all financial accounts onto one dashboard. Gradually, the delivery of financial services and products is also being offered by non-banking third parties, such as fintech firms. These developments are aspects of open banking and are continuously evolving in nature.