The US-India Business Council (USIBC) warned on Tuesday that data flow restriction policies could be "obstacles" to expanding services in India, affecting not only consumers, but also the growth of Indian market. payment market. This statement comes just a day after the expiry of the deadline set by RBI for locating data from payment companies operating in India.
Nearly 80% of the players in the payments industry, including Paytm and WhatsApp, have complied with the RBI standards for storing payment data, but some debit / credit players have still not been lined up after seemingly asking for more time. "USIBC wants to continue working with Indian decision-makers to address the concerns of data localization policies and strengthen the ability of US companies to meet the growing needs of Indian consumers in the payments markets," Nisha Biswal, President of US-India Business Council. at the American Chamber of Commerce, said in a statement.
Biswal said the USIBC members were willing to work with the Indian government to identify "the best way forward" for data storage issues regarding payment companies operating in India. India must pursue policies to ensure that it remains a hub for global services and to bring "best-in-class" technology and operations to meet the payment needs of Indian consumers, the report said. communicated.
As the leading economy on the international scene, India's policies must reflect the increasingly interconnected relationship between Indian consumers and their service providers in the global market, the statement said. "Data policies restricting the flow of data can be obstacles to continued growth and expansion of services in Indian markets and affect not only the Indian consumer but also the growth of the Indian payments market as a whole "warned the statement.
The growing complexity of Indian markets "requires" a collaborative relationship with key stakeholders to develop policies that capitalize on existing benefits and propel India's economic growth, Biswal said. "USIBC understands that the vision of a healthy payment infrastructure in India is a long-term goal that requires the continued engagement of stakeholders and policymakers to implement the most effective reforms," he said. communicated.
The RBI issued a circular in April asking all payment system providers in the country to ensure that data on the systems they operated were stored only in India and set 15 October as the deadline.
The central bank's data localization policy had provoked mixed reactions from the payment services sector. While some of the leading domestic payment companies such as Paytm and PhonePe have supported the saying, global players such as Google (which offers Google Pay) have advocated for the free flow of data. The location of the data refers to the process of storing data within the borders of a particular country where the data was generated.