Payments providers ask RBI to reconsider data storage rule
RBI had asked all payments services providers in April 2018 to store data in India itself.
May 23, 2018 / 12:15 PM IST
International payments services providers have written to Reserve Bank of India (RBI), asking the central bank to reconsider its recent guidelines on data storage, Business Standard quoted sources as saying.
In April this year, RBI asked all payment system operators to store their data within the country and gave the companies six months time to comply with the norms.
However, affected companies have written to the central bank and formed a lobby group to take up the issue with the RBI, the report said.
Also read - RBI asks payment operators to store data in India only, comply by October 15
One of the letters, viewed by Business Standard, said that data is often stored on cloud networks and that some foreign firms were bound by laws of their home countries.
Foreign companies such Visa, MasterCard and American Express, will be most affected by the move as they store transactions data outside of India.
Also read - Payments Council of India says not all payment firms want to store data in India
RBI has allowed data of international transactions to be stored outside the country if need be.