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RBI asks to keep financial data of customers stored in India

New Delhi: The Reserve bank of India has asked to keep financial data of customers stored in India itself. According to expert opinion, this new guideline may hurt foreign card companies such as Visa, MasterCard and American Express who process and store credit card transaction data outside of India.

The Reserve Bank of India’s directive to compel the storing of users’ financial transactions data within this country’s geographic boundaries has put payment companies in a quandary.

There is ambiguity on who would come under the regulations and what types of data need to be so stored in the country.

That aside, experts say, it would seem the new guideline is likely to hurt foreign players more, especially card companies such as Visa, MasterCard and American Express. These process and store credit card transaction data outside of India. 

It is also expected to affect payment gateways such as MIGS and CyberSource, which work for MasterCard and Visa, respectively.

Experts also say companies using Unified Payments Interface for cash transfer or payment are also expected to take a hit to some extent. For, they have access to customer data such as who is sending the money, since people using the service share their WhatsApp numbers or Gmail. However, they don’t have access to the transaction data.

Most global companies which have launched payment services here -- such as WhatsApp (WhatsApp Pay), Google (Google Tez), Amazon (Amazon Pay) or Microsoft (Microsoft Pay) -- keep their users’ data outside the country; payments data always stays in the country.

 

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