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Recently,Commerce minister has met industry stakeholders on e-Commerce and data localisation issue.
During the meeting,the industry raised concerns around data localisation rules which requires storing of customer data exclusively in India without creating mirror sites overseas.
In April 2018,Reserve Bank of India(RBI) had asked payment firms to ensure their data are stored exclusively on local servers.RBI had also set a deadline of six months for compliance which some foreign firms such as Mastercard and Visa had missed.
The main intent behind data localisation is to protect the personal and financial information of the country’s citizens and residents from foreign surveillance and give local governments and regulators the jurisdiction to call for the data when required.
Besides,some of the companies also raised concerns about the draft e-commerce policy released by the government especially provisions related to treatment of data.
They raised the issue of government’s demand for data from companies where the companies argued that the data should be shared only for law and order and investigation situations.
Further,they also raised the issue of companies cannot share their data with their group companies.They argued that if a start-up cannot share its data with the parent company then nobody will want to acquire Indian start-ups at all.
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