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Mastercard Feels RBI's Data Rules May Compromise Its Fraud Detection

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Mastercard Inc is concerned that India has been strict in data localization rules as it would be hindering its ability to detect frauds and money laundering cases in the payments system within the country. A Bloomberg report said that the leading global payments services company feels that storing customer data exclusively in India without creating mirror sites overseas may be risky as "it takes away the capability to see the broader world."

 

The company failed to meet its last year's deadline to localize all its Indian data but intends to do it.

Mastercard Feels RBI's Data Rules May Compromise Its Fraud Detection

In April 2018, the Reserve Bank of India (RBI) had asked payment companies to make sure that the data is stored exclusively on local servers only and had given a tight deadline of six months only to comply with it. India along with China and Russia have some of the strictest rules when it comes to data localization.

Mastercard, as well as Visa Inc., had missed the RBI's October deadline and had requested for an extension. These international companies tend to store their data on global servers. With strict rules of data localization, they would have to make separate investments on domestic infrastructure and storage systems in the country to comply.

 

Mastercard's Chief Product Officer told Bloomberg that it was still working on ensuring that it protects Indian data while being able to spot frauds and money laundering cases that usually take place across borders.

Read more about: mastercard
Story first published: Tuesday, March 19, 2019, 13:54 [IST]
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