ONLY VISA CARD ADHERES TO DATA GUIDELINES, SAYS RESERVE BANK

MUMBAI: Visa Inc. is the only foreign card network to have complied with Reserve Bank of India’s data localization rules that has led to business restrictions on three rival networks, according to RBI’S response to a Right to Information query (RTI) filed by Mint.

The card network’s compliance with the RBI mandate to keep all local payments data within the country means that Visa will be the only overseas card network to be able to expand in India.

RBI restricted rival Mastercard from signing up new customers from July 22 for failing to comply with the norms. In April, it placed similar curbs on American Express Banking Corp. and Diners Club International Ltd. Responding to the RTI query in a letter dated August 13, RBI said these three entities are yet to meet its directions. In 2018, the regulator mandated payments service providers in India to store all transaction data in local servers and barred them from sending it outside the country with some exceptions.

While many firms opposed the idea initially, citing operational difficulties and an additional investment burden, most eventually complied or are in the process of doing so. The guidelines are applicable to all payment service providers authorized by RBI to set up and operate a payment system in India. According to the guidelines, in transactions comprising a foreign component, a copy of the domestic component may be stored abroad if required.