Cybersecurity Risks And Data Privacy Concerns In Pmjdy Digital Transactions

Abstract

The Pradhan Mantri Jan Dhan Yojana (PMJDY) has significantly improved financial inclusion in India by providing banking access to millions, particularly in rural and low-income communities. With the growing use of digital platforms like Aadhaar-enabled payment systems (AePS), mobile banking, and UPI under PMJDY, financial services have become more accessible and efficient. However, this shift to digital has also introduced serious cybersecurity and data privacy challenges. Many account holders lack digital literacy, making them vulnerable to fraud, including phishing, identity theft, and biometric misuse. Additionally, weak infrastructure, poor device security, and limited user awareness exacerbate the risks. The integration of Aadhaar for financial authentication has raised concerns about data privacy, particularly regarding unauthorized access to data and the lack of clear user consent. This paper investigates these emerging threats, examines relevant legal frameworks such as the Digital Personal Data Protection Act, 2023, and evaluates real-world fraud cases involving PMJDY users. It proposes practical solutions, including stronger security protocols, improved regulatory oversight, and widespread digital literacy initiatives. Ultimately, safeguarding digital financial services is essential to maintaining public trust and ensuring the long-term success of PMJDY’s mission of inclusive economic growth.