Consider the following statements: The Reserve Bank of India’s recent directives relating to ‘Storage of Payment System Data’, popularly known as data diktat, com- mand 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?

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YESPYQ · Accepted Answer

Correct answer: 1 only. Statement 1 is correct : The Reserve Bank of India (RBI) directed payment system providers to ensure that all pay- ment system data is stored only in India. This is part of the data localization policy. Statement 2 is incorrect : The RBI’s directive does not require payment systems to be owned or operated by public sector enterprises only. The policy applies to all payment system pro- viders regardless of whether they are public or private entities. It focuses on the localization of data storage rather than ownership structures. Statement 3 is incorrect : The directive does not require pay- ment system providers to submit audit reports to the Comp- troller and Auditor General of India. Instead, they are required to submit a System Audit Report (SAR) conducted by CERT- IN empaneled auditors to the RBI not later than December 31. 159

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