Consider the following statements: The Reserve Bank of India’s recent

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

  • 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

Which of the statements given above is/are correct?

1 only
1 and 2 only
3 only
1, 2 and 3
This question was previously asked in
UPSC IAS – 2019
The correct answer is A) 1 only.
The Reserve Bank of India’s (RBI) directive on ‘Storage of Payment System Data’ requires all system providers to ensure that the entire data relating to payment systems operated by them are stored in a system only in India. This is the core of the ‘data localization’ mandate.
Statement 2 is incorrect; the RBI directive applies to all payment system providers (including private companies, foreign entities operating in India, etc.) and does not mandate that the systems must be owned and operated by public sector enterprises.
Statement 3 is incorrect; the payment system providers are required to submit the System Audit Report to the RBI, not the Comptroller and Auditor General (CAG) of India. The CAG audits government accounts and public sector undertakings, not typically the compliance reports of private payment system providers submitted to the regulator (RBI).