RBI data storage norm: IAMAI calls for meeting with digital payments players

Following the RBI mandate on data storage for digital payment players, the Internet and Mobile Association of India (IAMAI ) has called for a discussion on Thursday with all the leading payments companies to debate over the ongoing matter.

On April 5, Reserve Bank of India (RBI) had asked all payment players to ensure data related to payment system be stored inside the country within six months.

The meeting called by IAMAI is expected to witness domestic as well as foreign players in digital payment space who may be not happy with the banking regulator diktat, reports TOI.

Quoting sources, the report further added that Visa, Mastercard, Facebook, Flipkart, Amazon, PayPal, and PayU, are among the companies expected to be present at the meeting.

Taking the responsibility on its shoulder, IAMAI that represents the interests of online and mobile value-added services industry is looking to address this matter with all stakeholders.

On Wednesday president of IAMAI Subho Ray had said that a regulator should not bring about such fundamental changes without consultation with a cross-section of affected parties.

While payment players like Paytm and Microsoft have supported the RBI demand to store data within India, foreign players like Google, Amazon, Facebook, and WhatsApp, who have recently launched their payment apps in the country, are in disarray.

The matter started when domestic payment firms including Paytm accused the government of giving special concessions and flexibility to tech giants like Google and WhatsApp to get them onto the UPI platform, while the homegrown firms were strictly asked to follow each of the guidelines.

The companies who have servers in India will not be bothered by the development.

To avoid the tussle with the Indian government, Silicon Valley-based Stripe, Mozido, and Payoneer have set up offices in India. Meanwhile, Facebook is also piloting a payments service in India with a UPI platform for its WhatsApp Pay.

Through IAMAI, these platforms will seek some relax from the apex banking body. During the RBI clampdown on KYC, IAMAI also raised its voice for some rectification in its mandate. However, RBI maintained its diktat. Post the meeting, it will be interesting to see how and with what unanimous agenda these payment players will come out of.