Twitter
Advertisement

All payments data to be stored only in India: RBI

By making it mandatory for foreign companies to store their payments data only in India, the RBI's directive would increase infrastructure costs for such firms

Latest News
article-main
FacebookTwitterWhatsappLinkedin

Foreign payment companies can process transactions outside India, but all the related data will have to be brought back for storage in the country within 24 hours, Reserve Bank of India (RBI) said on Wednesday.

By making it mandatory for foreign companies to store their payments data only in India, the RBI's directive would increase infrastructure costs for such firms. The central bank, however, believes that the local storage of such data would provide "unfettered supervisory access" and help in conducting investigations when needed.

RBI's circular comes a week after Union commerce and industry minister Piyush Goyal's meeting with e-commerce companies and central bank representatives. In the case of cross-border transactions, a copy of the domestic data can be stored abroad.

SECURE SYSTEMS

  • Payment transactions can be processed outside, but this data shall be stored only in India after the processing
     
  • The central bank believes that the local storage of such data would provide "unfettered supervisory access"

"For cross border transaction data, consisting of a foreign component and a domestic component, a copy of the domestic component may also be stored abroad, if required," RBI said.

Sticking to its April 2018 circular, the RBI on Wednesday clarified that payment transactions can be processed outside, but this data shall be stored only in India after the processing. Earlier, the central bank had stayed silent on whether data could be processed abroad or only done locally.

"In case the processing is done abroad, the data should be deleted from the systems abroad and brought back to India not later than the one business day or 24 hours from payment processing, whichever is earlier. The same should be stored only in India," it said.

On April 6, 2018, RBI had asked payment system operators (PSOs) to store data related to payments in India. Foreign firms wanted the central bank to dilute the rules as this would push up their infrastructure costs and impact their investment plans.

"All the companies who were represented in this meeting put forth their concerns related to the RBI data storage requirements and processing related guidelines issued by the central bank. RBI deputy governor B P Kanungo assured the industry representatives that the RBI will look into this," the central bank said.

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement