RBI issues clarification of payment data localisation

RBI declares localisation of Payment Data Storage

The Reserve Bank of India (RBI) on Wednesday declared that all data related to payments must be stored in India and all data related to transactions processed abroad will have to be brought back to the country within 24 hours. Data stored in India should include end-to-end transaction details and info about payment transactions.

RBI stated “For cross border transaction data, consisting of a foreign component and a domestic component, a copy of the domestic component may also be stored abroad, if required”.

The data storage norms will be applicable to all banks operating in India as they are participants in the payments system such as RTGS, NEFT, NPCI and card schemes. There will be some exceptions though. Some banks, especially foreign, that had been permitted to store the banking data abroad may continue to do so. However, in respect of domestic payment transactions, the data shall be stored only in India.

The data stored domestically must include end-to-end transaction details and information related to payment or settlement transaction collected or processed as part of a payment. “This may, inter alia, include—customer data (name, mobile number, email, Aadhaar number, PAN number, etc), payment sensitive data (customer and beneficiary account details) payment credentials (OTP, PIN, passwords, etc.); and, transaction data (originating and destination system information, transaction reference, timestamp, amount, etc.),” it said.

These regulations were expected to affect companies like Mastercard, American Express, Amazon, Facebook, Microsoft, Visa and PayPal who will be forced to store data locally. Here’s the full list of frequently asked questions on the matter that the RBI published.

In lieu of securing Indian customer data from hackers and cyber criminals, RBI has brought in such a policy.

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