NEW DELHI: With the October 15 deadline for compliance with the Reserve Bank’s data localisation norms running out, no relief has been forthcoming from the authorities so far. According to reports, while around 80 per cent of payments platforms have complied, there is no clarity on what action the regulator will take against those who have not.
The new norms, focused on data security and ensuring traceability of illicit transactions, were released on April 6 and mandate that all payments platform firms store payments data locally. While Indian firms welcomed the move, many foreign players like Amazon, Google, Visa and Mastercard had raised concerns. With the deadline running out with no relief from the RBI or the government materialising, these firms will now have to toe the line.
On Monday PTI reported that a few foreign companies like Amazon and Alibaba had complied with the norms. WhatsApp had also confirmed its compliance last week, announcing that it had set up a data centre in India to deal with Indian payments data.
In an emailed statement to TNIE, Amazon (which operates Amazon Pay), stated that “compliance with local laws and regulation is a top priority… in all the countries” it operates in. “We continue to work closely with the regulator towards this,” it said. Google India did not respond to requests for comment. In the meantime, domestic firms PhonePe and Paytm announced that they have complied with the regulations, with a Paytm spokesperson stating that it is important that India does not become a “mere internet colony for global companies”.
It is currently unclear what action will be taken against firms that have not complied. PTI quoted official sources stating that the RBI will “look at things on a case-to-case basis” from Tuesday. The RBI’s norms have resulted in international reactions, with two US Senators, John Cornyn and Mark Warner, writing to Prime Minister Narendra Modi just days ago to soften India’s stance on data localisation, warning that measures requiring it represent “key trade barriers” between the two nations.