{"id":27525,"date":"2018-10-23T14:35:08","date_gmt":"2018-10-23T09:05:08","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=27525"},"modified":"2018-10-23T14:35:08","modified_gmt":"2018-10-23T09:05:08","slug":"how-localization-of-data-will-affect-firms-consumers","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/how-localization-of-data-will-affect-firms-consumers\/","title":{"rendered":"How localization of data will affect firms, consumers"},"content":{"rendered":"<p><a href=\"http:\/\/paper.livemint.com\/epaper\/viewer.aspx\">How localization of data will affect firms, consumers<\/a><\/p>\n<p><strong>News:<\/strong><\/p>\n<ol>\n<li>RBI directed payment firms to submit fortnightly updates on the progress made on storing data in India.<\/li>\n<\/ol>\n<p><strong>Payment Firms: <\/strong>Enterprises which handle transactions from digital payment systems to promote cashless mode of money transfer, e.g. by credit and debit cards.<\/p>\n<p><strong>Important Facts: <\/strong><\/p>\n<p>2. Recently released \u00a0draft e-commerce policy and the Srikrishna report talks about data localization.<\/p>\n<p><strong>3. About data localization<\/strong><\/p>\n<ul>\n<li>It is the practice of storing data on any device that is physically present within the borders of the country where the data is generated.<\/li>\n<li>Free flow of digital data is restricted by some governments. Data localization is promoted to protect security across borders.<strong style=\"font-size: 1rem;\">\u00a0<\/strong><\/li>\n<\/ul>\n<p><strong>4. RBI data localization norms:<\/strong><\/p>\n<ul>\n<li>RBI directed all system providers to store the entire data relating to payment systems operated by them in a system only in India.<\/li>\n<li>This data should include the full end-to-end transaction details\/ information collected\/ carried\/processed as part of the message\/payment instruction.<\/li>\n<li>For the overseas leg of a transaction, the data may be stored in the foreign country.<\/li>\n<\/ul>\n<p><strong>5. Rationale for the RBI regulation<\/strong><\/p>\n<ul>\n<li>Access to data stored by system providers and third-party vendors in the payments ecosystem will ensure better monitoring.<\/li>\n<\/ul>\n<p><strong>6. Consequences of data localization norms:<\/strong><\/p>\n<ul>\n<li>Payment firms have to abide by the laws framed by the government and RBI.<\/li>\n<li>Global digital payments like Visa, American EXpress, Facebook,Paypal, Mastercard and Google will be impacted.<\/li>\n<li>Google recently agreed to comply with the RBI\u2019s data localization norms.<\/li>\n<\/ul>\n<p><strong>7. Arguments for data localization:<\/strong><\/p>\n<ul>\n<li>It will help law enforcement agencies to detect crime and \u00a0gather evidence for prosecution as accessing information locally is easier than from foreign entities abroad.<\/li>\n<li>It will \u00a0help avoid the vulnerabilities of relying on fibre optic cable network.<\/li>\n<li>It will \u00a0prevent foreign surveillance of critical personal data.<\/li>\n<\/ul>\n<p><strong>8. Arguments against data localization:<\/strong><\/p>\n<ul>\n<li><strong>Splintering the internet<\/strong> by data localization weakens the data security measures globally.<\/li>\n<li>The Cyber Security Report 2017 reported that businesses in India were most at risk to cyber security attacks.<\/li>\n<li>Thus, a mandatory border control provision by data localisation may not be the solution to avoiding security breach incidents.<\/li>\n<li>As foreign governments use sophisticated malware to spy, forcing data storage within the country\u2019s boundaries may not offer it any better protection.<\/li>\n<li>Huge costs are involved to fulfill \u00a0data localisation requirements.<\/li>\n<\/ul>\n<p>9.<strong>. Way forward:<\/strong><\/p>\n<ul>\n<li>Robust security measures at par with global industry standards are needed \u00a0along with the push towards data localization.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>How localization of data will affect firms, consumers News: RBI directed payment firms to submit fortnightly updates on the progress made on storing data in India. Payment Firms: Enterprises which handle transactions from digital payment systems to promote cashless mode of money transfer, e.g. by credit and debit cards. Important Facts: 2. Recently released \u00a0draft&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/how-localization-of-data-will-affect-firms-consumers\/\">Continue reading <span class=\"screen-reader-text\">How localization of data will affect firms, consumers<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-27525","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704584165},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27525","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=27525"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27525\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=27525"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=27525"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=27525"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}