Sep 11: Tech giant Google has assured to entirely comply with the norms of Reserve Bank of India with regard to operation of payment services in India before December this year. Google has spoke with Law and IT minister Ravi Shankar Prasad to whom the assurance regarding compliance of norms was given by the American company.
Ravi Shankar Prasad, who is currently on a visit to US, has spoken with representatives from the company at its headquarters in California. Google has however requested for extra time to completely comply with the norms of RBI.
The time period was requested by Google so to follow the norm that directs all payment services to store data locally. Google will be setting up data centres to handle the data of its payment service in India. The company has said that the norms will be complied within the year end, i.e. before December 2018.
RBI has recently directed all companies running payment services including Paytm, PhonePe, Google etc. to store data locally in the country by mid-October. The decision was taken following rising concerns around data security.
At present, only a few payment system operators store transaction data in the country, either completely or partially. In addition to setting up data centres, the payment service companies will also have to update about the developments with respect to local data storage to the central bank every fortnight.
Google is running payment services in the country through Google Pay, which was called as Google Tez until now. Apart from payment services, Google is also readying up to offer instant credit services through the app in tie up with various financial institutions.