The Reserve Bank of India Deputy Governor BP Kanungo after the first MPC meeting of the fiscal year 2018-19 while addressing a press conference has asked payments banks to store user data only in India.
Further Observations :-
- Asserting that the payment ecosystem in the country has undergone rapid expansion with new systems, new players and new players being added but to maintain public’s confidence in the system is key to sustain this growth.
- Further, it is crucial for the RBI to ramp-up its monitoring over these payment players.
- The RBI gave six months to payment banks to comply with this order.
- It is necessary that security of the payment system is robust and continuously upgraded and best in class as per the international standard.
- Thorough monitoring and surveillance (by RBI) are also crucial.