28.4 C
New Delhi
Sunday 20 October 2019
India RBI sets 24-hr timeframe to bring back payment data...

RBI sets 24-hr timeframe to bring back payment data processed out of India

The clarification has come a week after the government said the RBI would examine concerns around its strict data-localisation guidelines.


- Advertisment -

Mumbai: To meet RBI demands, WhatsApp has finally set up its data storage facilities in India and is reportedly preparing for the full launch of its UPI payments app in association with ICICI Bank.

In April 2018, the RBI had issued a circular asking all payment system operators in the country to store data – pertaining to their customers – within India to ensure that user details remain secure against privacy breaches. They also had to get a third-party audit done by CERT IN-empanelled auditors.

Going ahead, RBI has toughened its stand on companies processing data outside India and has set a 24-hour deadline for the companies to bring back all data back to the country in such cases. These directives were applicable not only to payment entities but also to all banks operating in India.

While the Indian players like Paytm took no time to comply with the norms, WhatsApp and other foreign players active in payment domain were seeking a bit of relaxation in terms of securing mirror or copy payments data within India, while also storing the same data in its overseas servers. The list included Visa, Mastercard, American Express and the likes of Pay-Pal, Google Pay, Amazon Pay, as well.

“The entire payment data shall be stored in systems located only in India,” the RBI said in its frequently asked question (FAQ) section on Wednesday, responding to certain issues raised by payment system operators. “The data should be deleted from the systems abroad and brought back to India not later than one business day or 24 hours from the payment processing, whichever is earlier,” it added.

The clarification has come a week after the government said the RBI would examine concerns around its strict data-localisation guidelines.

Payment providers have been lobbying at various levels for the free flow of data across borders in order to ensure that customer benefits and fraud analysis are not affected.

While the government has been pushing for softer data-localisation guidelines by allowing data mirroring, the RBI has held its ground, maintaining that India’s payments data can only be stored locally.

The central bank has also said the data stored in India can be accessed or fetched whenever required for handling customer disputes as well as for any other related processing activity, such as chargeback. The data may be shared with the overseas regulator, if so required, depending upon the nature/origin of a transaction with due approval of the RBI, it added. The RBI allows a copy to be stored abroad in case of cross-border transactions.

The clarity on data processing outside India may come as a relief to global payment firms, but the RBI’s reiteration on exclusive storage poses a problem.

The RBI had released data-localisation guidelines on 6 April 2018 and gave payments providers six months for complying with the norms. Despite excessive lobbying by these players, the RBI remained firm on its guidelines and nearly all payments providers submitted a compliance plan and report to the regulator when the deadline approached. Majority of payment players have complied with the data storage norm.

Subscribe to our newsletter

You will get all our latest news and articles via email when you subscribe

The email despatches will be non-commercial in nature
Disputes, if any, subject to jurisdiction in New Delhi

Leave a Reply


Karva Chauth: Faith, legend behind viewing the moon through a sieve

The legend and Karva Chauth rituals vary across Rajasthan, Uttar Pradesh, Himachal Pradesh, Madhya Pradesh, Haryana, Punjab, Delhi and, in south India, Andhra Pradesh

Pakistan-Occupied Kashmir, Here We Come!

Study Wuhan and Mamallapuram in the backdrop of the fact that things are not quite working out in China-Pakistan economic relations, notwithstanding the urge of the communist state to contain India and that of the Islamic state to challenge it

Slowdown Has Reasons Other Than GST, Demonetisation

When all economic sectors decline, the mood of the market turns sombre, turning investors all the more reluctant to pump in money; the interdependence of industries means that the slowdown suffered by one would affect many

Where China & India, Resisting & Improving Democracy, Meet

What you see in Hong Kong is China resisting democracy; what you see in Kashmir is India promoting it; a reasonably capitalist China does not offer freedom politically but India, held back at times by the choice of the people, is still opening up; there could be a point of convergence as the two nations move in opposite directions

Omega-3: Study published in BMJ claiming no benefit for type 2 diabetes has myopic vision

Most respondents in the omega-3 study published in the BMJ are from Europe and North America; such results can hardly be applied worldwide
- Advertisement -


Qureshi: Manmohan Singh welcome as ordinary pilgrim

Pakistan Foreign Minister Shah Mehmood Qureshi claims former Indian Prime Minister Manmohan Singh had himself expressed a desire to visit Kartarpur as an ordinary pilgrim

Mosquitoes of Delhi scared Mughals and Brits, too

While books written in Persian in the era of Akbar talk of floral extracts' use as mosquito repellants, the Brits found the Mughal Red Fort uninhabitable because of the menace of the same pests

PIL before Ayodhya verdict to scrap Act on places of worship

Hindus would hardly complain that their faith is held ransom to legality as the PIL challenges their right to question some historical wrongs

Indrani Mukerjea claims to have bribed Chidambarams with $ 50,00,000

When Indrani and Peter Mukerjea approached Chidambaram for FIPB approval for FDI in INX Media, the then finance minister had allegedly sought the bribe

‘Moulding of relief’ affidavits for Ayodhya filed in Supreme Court

Know the provision of moulding of relief given to all parties to the dispute when they have argued their respective cases but the verdict is as yet reserved

You might also likeRELATED
Recommended to you

%d bloggers like this: