RBI Payment System Data Storage Directives
Question
Consider the following statements:
The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that
Which of the statements given above is/are correct?
- 1.
they shall ensure that entire data relating to payment systems operated by them are stored in a system only in India
- 2.
they shall ensure that the systems are owned and operated by public sector enterprises
- 3.
they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year
Options
1 only
1 and 2 only
3 only
1, 2 and 3
Explanation
Statement 1 is correct: RBI's 2018 directive mandated that all data relating to payment systems must be stored only in India, not in foreign servers. This was a significant data localization requirement for security and regulatory oversight. Statement 2 is incorrect: The directive does not require systems to be owned and operated only by public sector enterprises; private companies can continue operating payment systems as long as data is stored in India. Statement 3 is incorrect: While audit and compliance requirements exist, the specific requirement to submit consolidated audit reports to the Comptroller and Auditor General by year-end is not accurate as per the actual RBI directive. Only statement 1 is accurate.
Answer: (a).
Question details
Year
2019
Paper
GS Paper 1
Question
Q87
Subject
Economy
Sub-topic
Monetary policy and fintech regulation
Type
Statement-based
Difficulty
Medium
Nature
Current-affairs-linked
Source hint
RBI guidelines on payment system data storage 2018
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