Question : Localization of the Data

Will the Minister of ELECTRONICS and INFORMATION TECHNOLOGY be pleased to state:

(a) whether the payment records of Indian residents stored in data centers of payment system operators are situated outside the country and if so, the details thereof and the reasons therefor;

(b) whether the Government has proposed and issued directives for localization of the data for the payment system operators and if so, the details thereof; and

(c) the response of the international payment system operators, if any thereon?

(a): As per RBI, there are a few payment system operators (PSOs) who store data outside the country; these are systems which have been in vogue for decades.
(b): Reserve Bank of India issued a directive (under Sections 10(2) and 18 of the Payment and Settlement Systems Act 2007), vide circular DPSS.CO.OD.No 2785/06.08.005/2017-18 dated April 06, 2018 on ‘Storage of Payment System Data’ advising all system providers to ensure that, within a period of six months, the entire data relating to payment systems operated by them is stored in a system only in India. The Copy of the circular is enclosed.
(c): As per RBI, out of 76 operational authorized non-bank payment system operators (PSO), 72 have complied with the requirements of this circular. The remaining 4 entities are yet to comply and are being monitored by RBI for full compliance.

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