RBI financial data storage circular to affect global firms the most

Despite some ambiguity around new policy, experts say card companies and payment gateway entities will take biggest hit

The Reserve Bank of India (RBI) directive to compel the storing of users’ financial transactions data within this country’s geographic boundaries has put payment companies in a quandary.

There is ambiguity on who would come under the regulations and what types of data need to be so stored in the country. That aside, experts say, it would seem the new guideline is likely to hurt foreign players more, especially card companies such as Visa, MasterCard and American Express. These process and store credit card transaction data outside of India.

It is also expected to affect payment gateways such as MIGS and