Payments companies hit deadline for keeping data in India

SRINIGAR, India — Global credit card and payments companies like American Express, Visa and MasterCard are facing a challenge in meeting a requirement to store transaction data for all Indian customers within the country.

A new rule took effect Tuesday that directs payment companies to store all transaction data on computers inside the country.

Enacted in April by the Reserve Bank of India, the law gave payment companies six months to ensure transaction data of Indian customers was kept within the country to "ensure better monitoring" and "unfettered supervisory access to data."

However, the directive clarified that data for foreign parts of such transactions can be stored outside India.

It was unclear if foreign payment vendors like American Express, Visa and MasterCard had met the deadline or if India's central bank would take any immediate action for non-compliance.

Reserve Bank of India officials would not comment.

Press Trust of India news agency reported that some global financial technology had companies sought an extension to the deadline, although most have complied.

India has a competitive market for payments and the new rules have been welcomed by domestic companies like Paytm. A local payments system, called the Unified Payments Interface, accounts for nearly half the value of credit and debit card transactions in the country.

Regulators are striving to use such tools to help bring more Indian citizens, who traditionally have mostly bought and sold things using cash, into the formal, online economy

Critics of the new law called it "undemocratic and hastily executed policy matter."

"Such unilateral moves impact the trust in India as a market," said Nikhil Pahwa, a digital rights activist who has tracked payment industry for over a decade in India.

"Data localization is essentially a move to enable government surveillance in a country that doesn't have data protection law or surveillance law. This is terrible for consumers," said Pahwa, who is also founder of a portal that covers technology and social media policy.

You may also like these

Toxic tanneries forced to move pollute new...

Jul 6, 2018

Bangladesh tanneries prepping leather for shoes, belts and wallets are dumping toxic chemicals into...

At least 10 killed in mine collapse in eastern...

Dec 30, 2016

A coal mine collapse in eastern India killed at least 10 workers and 13 others may be trapped by...

Library grounds in southern India turn into quiet...

Feb 18, 2017

In the congested southern Indian city of Hyderabad, the sprawling grounds of the central library...

Debate rages in India on IVF for women over 50

May 25, 2017

Scores of women in India give birth at advanced ages with the help of a controversial doctor who...

A wealthier India sees alarming rise in...

Jun 2, 2017

A two-decade economic boom has led to obesity in India's youth, and diabetes cases are rising among...

Search
Broaden News

Sign up now!

Recent Discovery will take you to the captivating developments in science, technology, and the universe around us. We deliver to you the latest news, theories, and developments in the world of science.

Contact us: sales[at]recentdiscovery.com