RBI directive on data localisation: Though security agencies back move, govt may take a lenient view
New Delhi: Rattled by the Reserve Bank of India (RBI) directive on data localisation, American global payment companies want the Donald Trump administration to intervene and put ‘considerable pressure’ on Indian authorities after the latter refused to buckle under pressure. The RBI is firm on its norm for storage of payment system data and has instructed financial services companies to ensure implementation of data localisation by 15 October.
A slew of meetings was held in September-October within the government and with the monetary regulator to discuss various concerns raised by global financial technology companies who were reluctant to store transaction data in India instead of USA. Since the RBI has turned down the offer of ‘mirror data’ by the companies with a clear direction of storage of data in India only, there were some fireworks in the recent meetings.
US-based firms observed that through such a directive India was seeking to take a higher ground.