NIPFP: Data localisation norms are too broad, don't address key issues

Mandatory nature of localisation within specific regions ups risks of security breaches and data misuse; lack of strong protection regime may lower data protection and efficacy of payments ecosystem

A recent paper by the National Institute of Public Finance and Policy, an autonomous government research institute, has come down heavily on the data localisation norms introduced by the Reserve Bank of India (RBI) earlier this year. The report notes that the guidelines are too broad and does not address specific problems due to an inadequate understanding by regulators of the complex nature of technology operations by financial and tech firms worldwide.  

On 6 April the RBI issued a directive for all players in payments and settlement ecosystem to comply with new rules concerning the storage and processing of data.