RBI to soften stand on Storage of Critical Data

RBI to soften stand on Storage of Critical Data

BE/RBINOTE/39/2019 

RBI

The Government of India had suggested stricter data storage rules in order to curb the misuse of data by different companies like transferring to third parties, and other activities.  This was not received well by the Technology companies, including US India Trade groups as well as top US officials, who argued that this would compel them to modify their business models, and intervene in their plans in their investment process and thus result in increased costs.

In a recent meeting with the Technology players, like Amazon, Flipkart, Google, Facebook, Microsoft, Mastercard and American Express and others which was also attended by top Government and RBI officials and leading companies’ representatives the RBI Deputy Governor assured the industry representatives that RBI will look into this and would soften the decision.

Incidentally RBI had last year brought a condition that Global payment companies should store transaction data of Indian customers within India.  Also, Government had drafted a Law on data storage which requires all personal data determined to be critical should be processed locally and the Government was the body to decide on such categories of such data which were considered critical and important.

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