Mastercard, Visa & American Express To Have Data Centres in India

As every country is coming out with their respective data security policies to make the data secure. Now, The government has gone all serious about securing financial data and wants to leave no-stone-unturned to ensure better monitoring of data. In the last month April, the RBI issued a notification and asked all payment system operators in the country to store all data within India. They were also asked to comply with the instructions within six months.

The RBI today asked all payment system operators in the country to store all data, including full end-to-end transaction details and information collected, within India to ensure security of users' information and the The operators have been asked to comply with the instructions within six months, the central bank said in a notification.
 

RBI noted that "not all system providers" store the payments data in India. In order to ensure better monitoring, it is important to have unfettered supervisory access to data stored with these system providers as also with their service providers/ intermediaries/third party vendors and other entities in the payment ecosystem, it said in the notification.
 

The RBI’s notification was also met with strong resentment by mobile application-based lending companies which felt all hassled while moving data from countries like Singapore to India as moving involves a lot of time, effort and cost. In a notice to three biggies into card business, Mastercard, Visa, and American Express-were at the forefront which conveyed their reservations to the Central bank.

These companies were majorly concerned as they process the bulk of the country’s digital transactions and their network processors are situated across the world to maintain peak loads.

The three card companies-Mastercard, Visa, and American Express-which upped the ante to dilute RBI’s directives, has met with strong oppositions from the central bank that directed the companies to comply with the order, and not complain, as per the report. With this the opportunity for the growth of Data centre in India will increase in next six months. Now, the existing Data centers in India have to scale their facility.

As per the direction of RBI ,certain digital payment companies to get effected .However, PayTm and Ru pay officials claim on their they store their data in India itself.