Visa Inc., Mastercard Inc. and several other payment companies missed the Reserve Bank of India's Oct. 15 deadline to comply with data localization requirements set by the central bank, The Hindu BusinessLine reported Oct. 15, citing sources.
Out of 78 payment companies in the country, 15 are yet to comply with the central bank's instructions issued in April, sources told the news outlet. American Express Co. and PayPal Holdings Inc. are among the companies that missed the deadline.
The central bank in April issued guidelines on remittances and storage of payment system data to improve security and regulation in the industry. The new rules require domestic and international payment companies to store financial data of Indian users within the country.
The companies have sought 12 months from the Indian central bank to comply with the requirements, BloombergQuint reported, citing Mukesh Aghi, CEO of the U.S.-India Strategic Partnership Forum. Visa, Mastercard, American Express and PayPal have submitted a roadmap to the regulator on how and when they intend to set up data centers in the country, sources told The Hindu BusinessLine.
The Reserve Bank of India is expected to impose a penalty on the companies that missed the deadline but would not prohibit them from providing services, the sources said.
Visa, Mastercard and American Express did not comment on the matter, while PayPal refused to comment on regulatory aspects, The Hindu BusinessLine said.