Friday, June 21

RBI Issues Two New Policies to Payment Operators

The RBI ordered all payment system operators in the territory of India to stop exporting their financial data outside the country.

While announcing its bi-monthly monetary policy statement, the RBI also pointed out that in order to facilitate their access to all payment data for supervisory purposes, payment system operators are bound to keep all related data collected they possess stored exclusively within the territory of India. The RBI further announced that it is granting six months to all payment system operators to transition to this new policy and make necessary amendments to their systems.

Additionally, all regulated financial institutions, including banks will not be allowed to provide any financial services to businesses dealing with virtual currencies (VCs) such as bitcoins in a bid to protect consumer’s interest and check money laundering. Those dealing in such kind of services are advised to stop and are given three months to regulate their policy.

The central bank of India has consistently been critical about virtual currencies and warned users, holders, and traders of VCs in December 2013 and February and December 2017 about the its dangers. They did so in knowledge of the financial, operational, legal, customer protection and security-related risks that individuals are exposed to while investing in Bitcoins and other cryptocurrencies.