Indian government is getting strict towards the policies of multinational companies trading in the country and their points are finally being heard by the corporate giants due to the business opportunities in the market.
After getting a negative response from people all across the country, Mastercard has proposed a date to the RBI after which it will begin deleting the data of Indian cardholders from its global servers. In April, RBI had issued a new regulation, which came into effect from October 16, requiring payments companies to store all information about transactions involving Indians solely on computers within India.
Most companies were against this policy claiming that it would require too much work to handle the data separately. But now, they are ready to modify as WhatsApp has said that it will store data pertaining to its Indian users locally in India, and Google has put out a similar statement.
After this, my husband and I have applied for RuPay cards. Will try to move away from a company that cries to mommy at the first sign of competition https://t.co/tTKpwrzChK
— Nupur J Sharma (@UnSubtleDesi) November 2, 2018
Talking about MasterCard the situation is not that simple. The company had faced issues after it complained to the US government that the Indian government was “using nationalism” to promote RuPay. The complaint became a public interest topic and Mastercard received protests, as users started, canceling their Mastercard cards and got RuPay cards.
“The proposal we have given (to RBI) is that we will delete it (data) from everywhere else, whether it is the card number, transaction details. The data will only be stored in India … we will start deleting that…,” said Porush Singh, India and Division President, South Asia, MasterCard.
“No other country has asked us like that. “No other country in the world has asked us the data to be deleted from the global server and the reason why it is a concern for us because that would be weakening of the safety, security over a period of time,” Singh added.
It will be interesting to see what further steps the company will take to get back its business growth in India.