Econom

Payment players told to stick to deadline on data storage

NEW DELHI, 13/06/2012: Reserve Bank may cut the interest rates next week to boost the sagging economy, even as World Bank said this in the report titled 'Global Economic Prospect' that the Indian economy will grow by 6.9 per cent in this financial year 2012-13 notwithstanding problems like policy uncertainties, fiscal deficit and inflation. A view of Reserve Bank of India in New Delhi on June 13, 2012. Photo: V.V. Krishnan

NEW DELHI, 13/06/2012: Reserve Bank may cut the interest rates next week to boost the sagging economy, even as World Bank said this in the report titled 'Global Economic Prospect' that the Indian economy will grow by 6.9 per cent in this financial year 2012-13 notwithstanding problems like policy uncertainties, fiscal deficit and inflation. A view of Reserve Bank of India in New Delhi on June 13, 2012. Photo: V.V. Krishnan   | Photo Credit: V_V_Krishnan

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80% of firms comply; Reserve Bank rules out mirror storage

The Reserve Bank of India (RBI) has asked payment system players to adhere to the October 15 deadline for storing data locally. This, after some of them sought an extension during a recent meeting with top central bank officials.

According to sources aware of the discussion, 80% of the 78 players, including Amazon, Alibaba and WhatsApp, have already complied with the RBI norms, while only a few players, including some card ecosystem companies, are yet to comply.

On April 6, the banking regulator asked all players to ensure that the entire data relating to payment systems operated are stored in a system only in India. The data should include the full end-to-end transaction details, and information collected, carried and processed as part of the message or payment instruction, RBI had said. Payment system players were given six months’ time, which ends on October 15, to comply with the guidelines. “Since it was communicated to all the companies six months ago, the central bank expects the players to adhere to the deadline,” said a source.

No hint at extension

The central bank has not given any indication to the players that the deadline will be extended. A final decision on the issue is expected only on October 15. However, the central bank has ruled out mirroring of data as suggested by a few players. Mirroring means the data can be stored in a foreign location also. “The central bank wants data pertaining to payment system to be stored only locally,” the source added. RBI had said that in order to ensure better monitoring, it was important to have unfettered supervisory access to data stored with these system providers as also with their service providers and other entities in the payment ecosystem.