The Ministry of Commerce and Industry on Tuesday said the Reserve Bank of India will look into concerns regarding its strict data localisation rules, which require storing of customer details exclusively in India without forming mirror sites overseas.
This comes after the Reserve Bank of India, in April 2018, had asked payment firms to make sure that data is stored on local servers. The central bank had set a strict deadline of six months for compliance that some foreign firms, including Mastercard and Visa, had missed, PTI reported.
Minister of Commerce and Industry Piyush Goyal on Monday conducted consultation meetings with the representatives of tech firms and e-Commerce companies along with Reserve Bank of India Deputy Governor BP Kanungo. “All the companies who were represented in this meeting put forth their concerns related to RBI data storage requirements and processing-related guidelines issued by the RBI,” a statement from the ministry said. “Deputy Governor of Reserve Bank of India BP Kanungo assured the industry representatives that the Reserve Bank of India will look into this.” Goyal also asked the e-commerce representatives to submit their concerns in writing within 10 days.
International firms opt for storing data on global servers as the requirement to store data within the country would mean additional investment. However, policymakers in India are of the opinion that storing data locally would help monitor and carry out investigations if needed, according to PTI.
During the meeting on Monday, principles of data protection and privacy were also discussed and industry representatives voiced their concerns about the draft Data Protection Bill released in July 2018. The bill proposes the need for data localisation as a remedy to concerns over protection of personal data.
The representatives told Goyal that although the consultations regarding the bill were satisfactory, a lot of time had passed and they were unsure about the final shape of the bill. “The principles of data protection and privacy were discussed at length in the meeting and industry representatives requested the Minister to ensure that the Bill will have more clarity around classification of data and the manner of cross border flow of data,” the statement said. “Commerce Minister assured that Ministry of Electronics and Information Technology will address this concern too.”