Data localisation blues

Forcing companies to store data within India needs rethink

The Reserve Bank of India’s (RBI’s) directive on data localisation has led to a furore in India’s digital payments industry. In its notification, the central bank has mandated all payments companies, global and local, to set up data storage facilities within India by October. The RBI has said this is required to gain “unfettered supervisory access” to such data for better monitoring and regulation, which is essential for reducing risks from data breaches. It is not surprising that in the wake of the Cambridge Analytica data leak, there is growing concern among regulators and policymakers about the fate of Indian