Mumbai: All payment system players in India will now be required to store data within the country to ensure its safety and security, the Reserve Bank of India (RBI) announced on Thursday.
Payment system operators will be given six months to comply with the directive, RBI Deputy Governor B.P. Kanungo said at a media briefing here, convened to announce the central bank's first bi-monthly monetary policy review of the current fiscal.
"It is essential to ensure we have a robust system for the safety and security of data on payment systems. Continuous monitoring and surveillance is essential to reduce the risks of data breach," he said.
The RBI official said that currently only some payment system operators and their outsourcing partners store their data either partially or completely in India.
"It has been decided that all operators will ensure that data related to payment systems operated by them are stored only in the country within six months," he said.
In a statement, the central bank said it will issue detailed instructions on the matter within a week.