American digital payments player PayPal has said that it is working with its partners on data localisation as mandated by the Reserve Bank of India(RBI).
Data localisation is the act of storing data on any device physically present within the borders of a country.Localisation mandates that companies collecting critical data about consumers must store and process them within the borders of the country.
In April 2018,Reserve Bank of India(RBI) had asked payment firms to ensure their data are stored exclusively on local servers.RBI had also set a deadline of six months for compliance which some foreign firms such as Mastercard and Visa had missed.
The main intent behind data localisation is to protect the personal and financial information of the country’s citizens and residents from foreign surveillance and give local governments and regulators the jurisdiction to call for the data when required.
Further,data localisation is essential to national security.Storing of data locally is expected to help law-enforcement agencies to access information that is needed for the detection of a crime or to gather evidence.