RBI Mandates Data Localisation For Payment Systems

The Reserve Bank of India (RBI), India's central bank and the regulator for payment systems in India, in its press release dated 5 April 2018 (Press Release) on Statement on Development and Regulatory Policies of the First Bi-monthly Monetary Policy Statement for 2018-19, had announced that all payment system operators would need to ensure that data related to payment systems operated by them are stored only within India within a period of six months. RBI had indicated that detailed instructions would follow in a week's time.

On 6 April 2018, RBI released a directive (Directive) with detailed instructions, which are discussed below:

What Payment Systems need to do?

• All payment system providers will need to ensure that the entire data relating to payment systems operated by them are stored in a system only in India;