RBI has pulled up foreign banks in the country for not complying with the data localization rules.
Reserve Bank of India
The Reserve Bank of India (RBI) has reprimanded foreign banks for complying with the rules of data and audit. RBI has pulled up foreign banks in the country for not complying with the data localization rules. The central bank said that foreign banks have not submitted audit reports.
Data localization refers to the collection, processing and storage of personal data of citizens residing within the country and meeting the requirements of local privacy laws or data protection laws before transferring them internationally.
Foreign banks did not follow the rules
According to a Times of India report, recently RBI said that most banks are yet to submit system audit reports certifying compliance with data store rules even three years after the circular was issued. The central bank also said that many foreign banks have said that the audit rules do not apply to them and this was not acceptable. The central bank had asked banks to submit their compliance with the plan on or before May 15, 2021.
Let us tell you that whenever you swipe your credit / debit card, use any social media website, give your information to get a product of any company, then you are sharing your data with them. Right now most of this data is saved outside India, that too on cloud storage. The Indian government does not have that much hold on this data. Localization makes it mandatory for companies to store critical data related to customers within the country itself.
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