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Norms for payment apps
Why is it in the news ?
- The Ministry of Electronics and Information Technology (MeitY) has proposed that RBI come up with regulations to oversee collection, usage and sharing of data by payment service providers.
- Government is already in the process to expedite discussions on the draft Personal Data Protection Bill.
More in the news
- The MeitY proposal follows concerns raised by the National Cyber Security Coordinator (NCSC) over collection and storage of “sensitive personal data”.
- The data is collected and stored by the payment service providers via applications such as Google Tez, WhatsApp and Paytm.
- NCSC pointed out that there was no agreement between the National Payments Corporation of India (NPCI), the banks and the applications that provided payment services.
- Data localisation is a concept that the personal data of a country’s residents should be processed and stored in that country.
- Some directives may restrict flow entirely, while others more leniently allow for conditional data sharing or data mirroring – in which only a copy has to be stored in the country.
- As of now, much of cross-border data transfer is governed by individual bilateral “mutual legal assistance treaties” (MLATs).
Background
- In April, this year, the RBI directed all payments service providers to ensure that the data relating to payment systems operated by them were stored only in India.
- This came into effect in October 2018.
- In July this year, a panel headed by Justice B.N. Srikrishna submitted the draft personal data protection bill 2018.
- The draft bill proposed that critical personal data of Indian citizens be processed in a data centre located within the country.
- Additionally, it also recommended penalties on the data processor for any violation of the data protection law.
- It also talk about explicit consent and individual rights such as right to be forgotten, right of correction, updation, and data portability.
Source
The Hindu.