Data Localisation Policy

Government released draft data localisation rules in December 2018

Draft calls for internet companies to store data in Indian servers

Intermediary guidelines significantly impact user’s rights over internet

Amazon India has set up a team within Amazon Pay to work on the RBI guidelines

The RBI has asked payment companies to provide updates on the progress made in storing data in India

Google has also sought a couple of months more to comply with the directive

Why are so many global payment behemoths fiercely lobbying against this mandate?

Data localisation is bound to make India’s digital payments ecosystem much more resilient to foreign attacks and global politics

The policy will allow for better regulatory oversight and plug business-jurisdiction related loopholes that some foreign companies have long exploited to evade paying fair taxes in India

• The RBI had given six months time to global payment companies to secure data in India
• Google, Microsoft, Paytm etc supported the decision
• The finance ministry has proposed that companies store a copy of their data in India

The National Ecommerce Policy Framework Will Take Inputs From The Impact Of The EU GDPR And More

MeitY Had Written To The NPCI Previously On The Matter, But Wasn’t Satisfied With The Response, So It Has Asked Specific Questions This Time