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Companies expected a kind of respite from the banking regulator on this issue. But realizing RBI's strong stance, Amazon has started the process of integrating India's payment data into the country's geo-fence. After the publication of its first April circular requiring payment data to be stored only in India, a number of players in the payments sector contacted the supervisor seeking easing. The deadline for compliance was October 15th. At present, companies whose majority of payment data is stored on servers abroad seem to be in a hurry to comply with the rules.
Amazon's payment activities are largely managed under its Amazon Pay portfolio. The Seattle-based company has stepped up Amazon Pay's operations even outside its own market. The company has integrated large third-party merchants in areas such as food delivery, movie reservations and transportation.
"Respect for local laws and regulations is a top priority for all countries in which we operate, and we continue to work closely with regulators in this area," said a spokesperson for the country. Amazon India in an e-mail response on this.
At present, RBI has indicated no sanction against companies that still do not comply with the regulations, but it would closely monitor the evolution of the situation. The regulatory body also ensures that the services of these companies are not disrupted, as this will eventually affect consumers. Payment players had asked to be able to store a copy of the same data outside of India. But the RBI shot down that too. TOI has previously indicated that WhatsApp started to store data locally, but that it was also reflected abroad. For this reason, the UPI platform (Unified Payments Interface) has still not been authorized.
Companies like Paytm and PhonePe have publicly supported the RBI's decision, which many believe would benefit these local players over their global rivals.
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