The multinational financial services company, Mastercard, has informed the Reserve Bank of India (RBI) that it will soon start deleting data of Indian consumers from its global servers. The organisation has presented a proposal to the RBI regarding the entire procedure for data deletion.
The New York-based company, however, is wary of the safety and security impact the data deletion process could have. The company is said to have informed the RBI that it will start the elaborate process on a certain day.
Data deletion is not a simple process and will have to go through multiple layers. The process will begin only after the RBI gives its confirmation on the proposal and will be carried out on a regular basis.
The proposal of data deletion came into the picture after the RBI issued a guideline in April asking all companies, offering payment services to Indian customers, to store data locally. The regulation came into effect on October 16.
Mastercard, as per RBI’s data localisation regulation, has started storing all current transaction details of Indians in its technology centre in Pune. It has proposed to the RBI that it will delete back data but is fearful of the consequences, such as fallouts with regard to transactions.
The India and Division President, South Asia, for Mastercard, Porush Singh, said in an interview that no other country has requested for data localisation and that over time, such regulations could put the security of the transaction details at risk. Singh also mentioned that the data localisation process will result in incremental costs.