Amazon has started storing payments data in India locally without mirroring it in their overseas servers, people aware of the matter said. The
e-commerce company is expected to achieve complete compliance over the next two weeks, in line with the RBI diktat.
Companies had expected some sort of breather from the banking regulator on this issue. But realising RBI’s stern stand, Amazon started the process of bringing India payments data within the geo-fence of the country. After its first circular in April mandating payments data should be stored only in India, several payments players reached out to the regulator seeking relaxations. The deadline for compliance was October 15. Now, companies with the majority of their payments data in overseas servers seem to be in a rush to comply with the rules.
Amazon’s payments business is largely run under its wallet, Amazon Pay. The Seattle-based company has been scaling up the operations of Amazon Pay even outside its own marketplace. The company has been on-boarding top third-party merchants across segments like food delivery, movie bookings, and transportation.
“Compliance with local laws and regulation is a top priority for us in all the countries we operate in. We continue to work closely with the regulator towards this,” a spokesperson of Amazon India said in an emailed response on this matter.
RBI, as of now, has not indicated any penalties on companies that are still not compliant, but it is said to be closely tracking the development. The regulator is also making sure the services of these companies are not disrupted as that will eventually impact the consumers. Payments players had requested that they should be allowed to store a copy of the same data outside India. But the RBI shot that down too. TOI reported previously that WhatsApp has started storing data locally, but it mirrors the same overseas too. For this reason, it still has not been allowed to go full-scale on the
Unified Payments Interface (UPI) platform.
Companies like Paytm and PhonePe have publicly backed the RBI’s move, which many say would benefit these local players against global rivals.