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Paytm builds lobby for data localisations, seeks support of IAMAI


Two sets of lobbies are arguing hard for and against of data localisation in India. After hearing plenty of arguments against data localisation from the likes of Google’s Sundar Pichai, the other forces—favouring data localisation—have started voicing their reasons behind the wisdom of putting data on local servers.

Digital payment platform Paytm, which has been vociferously supporting data localisation policy, is now trying to influence industry bodies that have so far not supported the case.

It has written to the Internet and Mobile Association of India (IAMAI) and explained that the country needs a strong consumer data protection framework that respects the privacy concerns of citizens, and a level playing field for the Indian startup ecosystem with respect to global tech giants.

Importantly, IAMAI hasn’t fully supported the draft data protection Bill and stood against the certain provisions.

The letter is in the context of a meeting organised by IAMAI last month seeking the industry’s response to the draft personal data protection Bill.

The industry body has been actively participating in the whole matter since April when the Reserve Bank of India (RBI) asked all payment players to ensure data related to payment system be stored inside the country within six months.

In the same month, IAMAI called for a discussion with all the leading payments companies to debate over the ongoing matter.

While payment players like Paytm and PhonePe have supported the RBI demand to store data within India, foreign players like Google, Amazon, and WhatsApp, which 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 development was first reported by ET.

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