Zerodha Founder Nithin Kamath's Preference for Security in Mobile Payments

India's Mobile Banking Transactions Reach New Heights

Financial Data: According to CEIC Data, based on Reserve Bank of India statistics, the total value of interbank mobile payments in India increased from approximately Rs 26.5 lakh crore in February 2025 to about Rs 34.1 lakh crore by January 2026, reflecting a significant rise in usage.

Digital Payments Growth The digital payments system has grown rapidly in recent years, conducting over 65,000 crore transactions totalling more than Rs 12,000 lakh crore in the last six financial years, according to the Press Information Bureau (PIB). This growth has enhanced access to financial services, especially for underserved and unserved communities.

Concerns Over User Privacy Zerodha's Nithin Kamath has raised concerns about the level of access required from users by mobile banking apps. Kamath argues that these apps often request unnecessary permissions, such as access to SMS, contacts, and phone data, which may not be essential for basic banking functions. This approach goes against the widely accepted Principle of Least Privilege (PoLP), which suggests that any system or application should only be given the minimum level of access needed to perform its task.

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Balancing Convenience and Privacy Kamath suggests that a more balanced approach to ensure both security and privacy is to rely on regulatory frameworks, such as strong two-factor authentication mandated by the Securities and Exchange Board of India (SEBI). This approach has enabled Zerodha's trading app, Kite, to build trust among users without asking for any mobile permissions.