RBI norms will secure your data and privacy.
Yes, we are aware about the RBI norms on consumer’s data back in 2014, Reserve bank of India has given direction to multinational payments companies. According to the mandate companies strictly followed the rule of storing data related to Indian consumers within the country.
Reserve banks are free to take any legal action against those which do not comply with their directions and instructions. Reserve bank of India directed all the related companies to submit a brief report on the localization of payments data. After analyzing reports it takes final decision against the companies who breaks the law.
As far as protection of consumer’s data is concern then consumer don’t have to worry. If in case companies and firms could not able to follow the directions in a given deadline even then consumer data and interest will be keep secured. Credit and debit cards of consumer’s will continue to function smoothly.
After this regulation within a six month period, 80 percent of the payment companies already adhered to regulations. Not only Indian originated payment companies like Paytm and Phonpe but also the global big shots such as Whatsapp, Alibaba and Amazon also compliance with the rules. But firms like American express, Master card were not too happy with the directions they seek some relaxation of the norms regarding data storage.
By analyzing the new rule, country’s bankers think that rules were not in supporting of data mirroring. Due to rise in digital payment’s demand of storing data within the country has increased significantly. This rule will be helpful in creating new employment opportunities as it will require the large number of analysts and data specialist to processed and store the data.
This rule was made with the objective in the mind to boost the growth of Indian startups and firms. This rule safeguards the Indian payment companies such as Phonpe and Paytm who enormously indulge in data localization. This move will fill the loopholes exploited by few foreign brands for longer period of time which is not paying fair taxes in India.
Now let’s see what the consumer data regulations are across the globe.
China has the most strict and comprehensive regulations on consumer’s data. Chinese laws are covering almost all aspects of the regulations including consumer’s personal data and information. Some experts also believe that these laws make the way for Chinese government for easy access to the consumer’s data which creates strong cyber sovereignty.
As far as European nations are concerned in this part of the world, European Union does not implement any specific date regulation rule. Their only concern is regarding cross border data movement can happen even if the other country strict rules and compliances to protect the consumer data. This shows that different nations have different types of regulations of data localization.
For example In Nigeria, all subscriber and consumer data of telecom and tech companies including government firms stored locally. Germany also follows same rules that internet service providers and telecom companies will collect and store the data locally. Russian mandate allows citizens data to be stored within the Nation’s borders.
By understanding above mentioned points we can say that regulations made by reserve bank of India regarding consumer data protection is a great step and should be applied earlier. Due to lack of this rule foreign companies is tracking and pirating Indian’s consumer data which can compromise nation integrity and security. Although situation is not good even now at least government has some amount of control on processing of consumer data.