Data Localisation Policy

Share with Your Friends

Data Localisation Policy 

Recently, Visa has completed compliance with the Reserve Bank of India (RBI) data localization norms.

In such a situation, Visa has now become one of the first global financial services companies to comply with the data localization norms of the Reserve Bank of India.

It is to be noted that RBI has barred MasterCard, American Express and Diners Club from enrolling new customers for not storing their data in India.

The Reserve Bank of India has issued data localization rules under the Payment and Settlement Systems Act, 2007 in the year 2018. It provides that the Payment System Operators (PSOs) authorized in India shall ensure that data relating to payment systems such as customer data, payment sensitive data etc. is compulsorily stored in India.

Transactions done using debit or credit cards are transferred only through platforms like MasterCard, Visa and National Payments Corporation of India (NPCI).

Importance of data localization

It enhances the security of payment systems through continuous control and monitoring, and ensure faster and better access to personal data for law enforcement and increase economic growth and employment.

Problems with data localization: A data localization policy may prevent many FinTech start-ups from opting for affordable cloud service providers globally, and as such, they will opt for the local option, which has higher operating costs.

Key facts about data localization

  • Payment System Providers are required to ensure that all data relating to the payment systems operated by them is stored only in a system located in India.
  • Service providers were supposed to comply by October 15, 2018, but were given additional time repeatedly.
  • A key requirement was System Audit Reports (SARs) by certified auditors.
  • The Reserve Bank of India later extended some flexibility and allowed data to be sent intraday abroad for processing.
  • Some providers are not in a position to submit audit reports as they have to certify that the data sent abroad has been deleted.

Source – The Hindu

Download Our App

More Current Affairs

Click to Join Our Current Affairs WhatsApp Group

Join Our Whatsapp Group For Daily, Weekly, Monthly Current Affairs Compilation & Daily Mains Answer Writing Test & Current Affairs MCQ

In Our Current Affairs WhatsApp Group you will get daily Mains Answer Writing Question PDF and Word File, Daily Current Affairs PDF and So Much More in Free So Join Now

Register For Latest Notification

Register Yourself For Latest Current Affairs

December 2022
M T W T F S S
« Nov    
 1234
567891011
12131415161718
19202122232425
262728293031  

Mains Answer Writing Practice

Recent Current Affairs (English)

Current Affairs (हिन्दी)

Subscribe Our Youtube Channel

Register now

Get Free Counselling Session with mentor

Download App

Get Youth Pathshala App For Free

Open chat
1
Youth Destination IAS . PCS
To get access
- NCERT Classes
- Current Affairs Magazine
- IAS Booklet
- Complete syllabus analysis
- Demo classes
https://online.youthdestination.in/