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Neither Government nor RBI in favour of liberating data localization norms

Putting an end to the speculations by the data companies for the deadline of the data localization norms, the Government and Reserve Bank of India (RBI) have said on Monday that they were not in the favour of extending the last date.

A senior government official said that they will not allow data mirroring by payment firms as an alternative to store data locally.

Earlier, RBI has made it mandatory to all the payment companies like MasterCard, Visa or American Express to preserve their data locally and submit its compliance report till the 15th October. Even WhatsApp and Google were also directed to store their data locally.

RBI- Business news- truecolumn
RBI – Business News – truecolumn

RBI in a statement said, “All system providers shall ensure that the entire data relating to payment systems operated by them are stored in a system only in India. This data should include the full end-to-end transaction details/information collected/carried/processed as part of the message/payment instruction”.

Following the directions of the RBI, about 60 firms have already submitted their report but some of the globally recognized companies are asking for the relaxation from the deadline as well as the directives. They first approached to the RBI but after getting the rejection asked the Union government for 6the relaxation.

However, WhatsApp became the first global companies to comply with the data localization norms and last week released a statement by saying that they have built a system that will stores data locally in India.

 

 

 

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