Consider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data diktat, command the payment system providers that
- they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India
- they shall ensure that the systems are owned and operated by public sector enterprises
- they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year
Which of the statements given above is/are correct?
Detailed Explanation:
Answer: Option 1 — 1 only
The RBI's directive on 'Storage of Payment System Data' (issued in April 2018) primarily mandates that all payment system operators must store the entire data relating to payment systems operated by them in systems located only within India. This is aimed at ensuring better supervision, data security, and regulatory oversight.
✅ Statement 1 – Correct: The directive explicitly requires that entire payment system data must be stored in systems located only in India, with a compliance deadline originally set for October 2018.
❌ Statement 2 – Incorrect: There is no requirement in the directive that the storage systems must be owned and operated by public sector enterprises; private entities can also comply as long as data is stored within India.
❌ Statement 3 – Incorrect: The directive does not mandate submission of consolidated system audit reports to the Comptroller and Auditor General of India; such reporting is typically required only for government entities.
📝 Short Notes: RBI Data Localization Directive
| Aspect | Details |
|---|---|
| Official Name | Storage of Payment System Data directive |
| Issued By | Reserve Bank of India (RBI) |
| Year of Issue | April 2018 |
| Core Requirement | All payment system data must be stored only in India |
| Affected Entities | All payment system operators (domestic and foreign) |
| Objective | Enhanced data security, better supervisory access, and regulatory oversight |
| Compliance Timeline | Originally 6 months (October 2018) |
| Controversy | Foreign payment companies (Visa, Mastercard, etc.) raised concerns about compliance costs and operational challenges |
Question 6 of 9 Reserve Bank of India
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