"Our Neutrality is Our License": PFRDA Chief Slams Misuse of Financial Data
PFRDA Chairman Sivasubramanian Ramann warns consent managers against using personal financial data for commercial profiling and analytics.
In a stern warning to the financial ecosystem, Pension Fund Regulatory and Development Authority (PFRDA) Chairman Sivasubramanian Ramann has cautioned consent managers against the temptation to use personal financial data for commercial gains. Speaking at SamvAAd 2026, Ramann emphasized that the integrity of financial intermediaries depends entirely on their ability to remain neutral and "blind" to the data they handle.
The Danger of Commercial Profiling
The PFRDA chief urged financial institutions and consent managers to resist pressures that push them toward using customer information for analytics, profiling, or other commercial purposes. He argued that such practices compromise user privacy and undermine the very foundation of their operational authority.
"Our neutrality is our license to operate. The day we compromise it, we are just another intermediary with a nicer interface. Data blindness is not a technical constraint we tolerate; it is the source of our authority," Ramann stated.
Privacy by Design, Not Just Policy
Drawing from his extensive background as a former Deputy Comptroller and Auditor General and Chief Technology Officer in the Office of the CAG, Ramann asserted that privacy cannot be left to policy documents alone. He insisted that digital systems must be designed in a way that inherently protects privacy.
He highlighted the transformative nature of India's Account Aggregator (AA) framework, noting that it has fundamentally shifted the power dynamic of data ownership. While data historically flowed based on the terms set by institutions, the AA framework has flipped this direction, making the citizen the origin of the data flow.
The Role of the AA Framework and Sahamati
According to Ramann, the neutral architecture of the AA framework has been pivotal in building trust among financial institutions. It allows for the secure exchange of information without the intermediaries ever having access to the actual underlying data.
He also credited Sahamati for establishing the common standards and rules that govern the Account Aggregator ecosystem. This standardization has allowed hundreds of financial institutions to communicate and exchange data without the need for tedious, separate bilateral agreements.
From Collateral to Cash Flow: Driving Financial Inclusion
To illustrate the real-world impact of these systems, Ramann shared an anecdote from his 2021 tenure at the Small Industries Development Bank of India (SIDBI). He recalled a woman entrepreneur who was "invisible" to lenders—not because she was a risky borrower, but because she lacked formal documentation, collateral, and a credit file.
Ramann explained that the combination of the Unified Payments Interface (UPI) and the Account Aggregator framework has changed this landscape. Lenders can now assess borrowers using actual financial transaction data, provided the user gives their consent.
This shift allows for cash-flow-based underwriting, replacing the old model of "collateral-based suspicion." He defined this transition as the true essence of financial inclusion, as it opens doors for small enterprises that were previously shut out of formal credit.
Consent as a Relationship, Not an Event
Closing his address, the PFRDA Chairman redefined how the industry should view user consent. He argued that granting consent should not be a one-time transaction but an ongoing relationship.
He stressed that users must have the ability to view, modify, or withdraw their consent at any time. In his view, any consent mechanism that does not allow for review or withdrawal is nothing more than a "permanent transfer with a polite name."