The RBI had issued a directive in April 2018 on ‘Storage of Payment System Data’. It had advised 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 RBI said in its Frequently Asked Questions (FAQs) on certain implementation issues raised by the Payment System Operators (PSOs) further said there is no bar on the processing of payment transactions outside India if so desired by the PSOs.
However, the data shall be stored only in India after the processing. The complete end-to-end transaction details should be part of the data.
In case the processing is done abroad, the data should be d from the systems abroad and brought back to India not later than the one business day or 24 hours from payment processing, whichever is earlier.
Last week, the issue of data localisation was raised by several e-commerce firms during their meetings with Commerce and Industry Minister Piyush Goyal.