Your ATM Card may stop working from Oct 16, know what is the reason
If you have a debit or credit card or ATM card of Visa, MasterCard and American Express, your credit card not working October 15. The reason for this is the rule of the Reserve Bank of India, which makes it mandatory for users to store data specifically in India. But 16 payment companies, including Visa and MasterCard, did not accept it. They argue that their cost incurred will increase significantly from local data storage.
credit card not working
Under RBI rules, it is mandatory for every payment company to have local storage of data related to payment system, which will be effective from October 16. There are 78 payment companies working in India, 62 of them have accepted the RBI rule. These include e-commerce companies like Amazon, Whatsapp and Alibaba.
RBI and not in the mood to give time
The 16 companies which have not considered the RBI’s rule, say that the data storage system in India will not only increase the cost of the cost, but also question the security of the data. He has asked the RBI to increase this time limit further. Large and foreign payment companies have asked the Ministry of Finance to intervene in this matter. According to the Business Standard news, the RBI is not in the mood to give these companies more time. These companies have already been given 6 months time.
The committee was formed by the government
On the recommendation of a high level committee under the chairmanship of retired judge BN Srikrishna, the government had sought public opinion on the draft of the Personal Data Security Bill. The last date for suggesting fixed on September 10, which increased to 30 September 2018. The Committee on Data Protection had submitted its report to the Central Government in July.
The impact of data localization on the economy
Though the forum platform Broadband India Forum (BIF) says that making the data localization mandatory, the economic growth rate of the country affected, hence the government should show generosity in it. According to BIF, data localization will increase the cost burden, which can have an impact on the economy. The forum said, “BIF demands the government to consider showing greater attitude of generosity in the last bill of data security.”