Digitalisation can expose consumers to impulsive spending, data breaches: RBI report

While digitalisation improves accessibility and convenience of financial services, it can expose consumers to impulsive spending, herd behaviour and data breaches, the Reserve Bank of India (RBI) said in a report.

In the Report on Currency and Finance (RCF) for 2023-24, released on Monday, the RBI said digitalisation-induced changes in the behaviour of consumers and financial intermediaries can have implications for monetary policy.

Digitalisation can also create a more complex and interconnected financial system with implications for financial stability.