Banking Central | Why they don't stop calling me for loan even when I don't need it?

It doesn't matter whether you are salaried or you run a business, you are the prey as long as you have an active bank account. They don't go into a slumber on the work days but they are more bullish on weekends because you are relatively easier to be reached.

As the harassment continues unabated, I wonder where has data privacy gone? How do these callers get the personal details? In fact, I found that

most callers are equipped with my basic details such as my name, city of residence, and primary contact number. Mind you, I never shared these details directly or gave my consent to my bank to share with these callers. That means they sourced it from someone with whom I willingly shared the details. The process of sourcing my data could be either through illegal means or by way of a clandestine understanding (say, by paying for the personal details).

This is clearly not acceptable, by no means.

And, what are these third parties? Banks typically outsource call centre activities to third parties to escape from the RBI rules that restrict the time and manner in which the customers can be contacted over phone. These call centres have targets to reach out to a certain number of customers every day which explains the endless calls we are forced to endure.

That's not all. We're constantly under a vigil. Our every financial activity on the phone in under a close watch, it seems. Even if you randomly look for loan rates and offers on your mobile app, an alert is sent out to the call centres. It triggers a flurry of calls, asking when you would like to draw the loan, and persistent effort to convince you to go for it even if you don't need it.

Their desperation is evident as their calls keep beeping on your phone when they find you busy on another call.

What about the data you and I share on social media platforms and merchant outlets? These details are also at risk of being leaked to the third-party apps by hackers who use it for loan canvassing. In the absence of strict laws to get them to books, this has become a ominous truth we seem to be destined to live with.

And, if you bite the bait, you're in for a rough ride. These easy loans come with hefty interests and the calls are replaced by a flood of text messages they start sending out to you several days before your payment deadline, almost driving you to foreclose the loan to stop the phone from whirring. Then come the worst part of harassment. In case you fail to meet the deadline, you are set for a trip to hell. They would malign you in all possible ways that you can't even imagine. We have seen many cases of suicide over harassment for defaulting on loans sold in a haste by banks without adequate transparency to the borrower.

Clearly, ethical lending institutions must stop making such cold calls multiple times a day and push lower-level executives to sell loans to customers even when they do not need it or investment products that they don’t understand.

So, what is the Big Brother of banking up to?

The Reserve Bank of India has repeatedly cautioned the financial entities it regulates to pay attention to the problem of data theft. In his speech delivered in November last year, RBI Deputy Governor M Rajeshwar Rao reminded banks that as custodians of vast volumes of sensitive customer data, banks must make the required efforts to adhere to the provisions of the Act and related regulations.

The good thing is that India is finally getting a Data Protection Bill. The government enacted the Bill last year. It provides for the processing of digital personal data in a manner that recognises the right of individuals to protect their personal data. However, despite the government laying down multiple deadlines and timeframes for the release of the draft DPDP rules, the framework remains a work in progress. The rules are not in place yet.

Well, do we see an end to the harassment once the rules are in place?

The law won’t make much of a difference without a seamless execution in place. It is up to the banks and other financial institutions to make sure that personal data collected at their counters is protected. In fact, more than forced by the regulations or a national Act, lending institutions should take this up as a duty and self-regulate in the interest of their customers. Now, that’s a call the bank managements must take and the Boards must enforce. Till then, any respite from the tele-callers looks unlikely.

My phone beeps again... "Hello sir... I have the best personal loan offer for you... How much do you need?"

Banking Central is a weekly column that keeps a close watch and connects the dots about the sector's most important events for readers.