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The negatives of data localisation

Mandating that Indian citizens' payment data should be stored within the country may be counter-productive

payment bank
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India’s digital payment market is projected to touch $1 trillion by 2023, contributing 15 per cent of the country’s GDP

T V Ramachandran
The Reserve Bank of India (RBI) recently mandated that payment companies physically store Indian citizens’ payment data in India. Companies will have six months to comply. The RBI's aim is to protect the sensitive financial information of Indian citizens.
 
Local Indian players are hailing the move as it would give them a time advantage while global players re-organise their data storage to comply with regulations. However, it is worthwhile for payment operators to consider the impact on the industry as a whole.
 
Impact on payment industry
 
India’s digital payment market is expected to hit $1 trillion by
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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First Published: May 13 2018 | 6:00 AM IST

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