WhatsApp Sets Up a New System to Store Payments Data Locally, Meets RBI Norm

By October 9th, 2018 AT 1:50 PM

WhatsApp has finally met the norms set by the Reserve Bank of India (RBI) as it has set up a system in India that stores payments-related data within the country. To recall, the RBI has set a norm back in April 2018 that all the payment service providers should store the data locally, which has halted WhatsApp’s wide rollout of payment services in the country. Today, the Facebook-owned confirmed that it now has a system locally which stores entire payment related data within the country.

whatsapp-payments-local-system

WhatsApp Was Asked by RBI to Set Up Local System

The Reserve Bank of India (RBI), in a circular dated April 6, had said all system providers should ensure that the entire data relating to payment systems operated by them are stored in a system only in India. It had given time till October 15 to comply with the mandate.

“In India, almost one million people are testing WhatsApp payments to send money to each other in a simple and secure way. In response to India’s payments data circular, we’ve built a system that stores payments-related data locally in India,” a WhatsApp spokesperson said to PTI.

The spokesperson added that the company hopes to expand the feature across India soon so that it can “contribute to the country’s financial inclusion goals”.

A Look-Back at RBI’s Order

RBI, in its April order, had said it is important to have “unfettered supervisory access to data stored with these system providers as also with their service providers/intermediaries/third party vendors and other entities in the payment ecosystem” to ensure better monitoring of payment service operators.

RBI further said data should include the full end-to-end transaction details, information collected/carried/ processed as part of the message/payment instruction.

Google Also to Set Up a System Locally

Google, which is also offering payment services in India through Google Pay has already confirmed that it will set up a system locally and would fully comply with RBI norms by the end of November. WhatsApp’s full-fledged foray into the payments sector will stir the market as it will officially become the largest UPI-based payments service in the country, beating the current leader Paytm. Other payment portals are Google Pay, Paytm, PhonePe, among others.

Read more on:

Chakri is a go-to guy for your next smartphone recommendation. Back in his engineering days, he used to play with smartphones by installing custom ROMs and that passion got him into the tech industry. He still goes nuts about a smartphone knocking his door for review. Currently managing everything at Telecom Talk, Chakri is trying to master PUBG Mobile in his free time.

Leave a Reply

avatar
Photo and Image Files
 
 
 

Recent Posts

Reliance Jio to Make the Most Out of Tariff Hike With Increased ARPU and Revenue

The Mukesh Ambani led telecom operator, Reliance Jio, is set to gain the most from the latest tariff hike, which...

Should Mi Band 4 Be Your Next Upgrade Over the Mi Band 3

If there is any other gadget which is next to smartphones in popularity, it is fitness trackers. The fitness tracker...

Reliance Jio Retains Rs 251 4G Voucher That Offers 2GB Daily Data for 51 Days

Reliance Jio’s new prepaid plans are now live across the country and the company did not add any more plans...