RBI wants all payment data in India; may launch own cryptocurrency

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Mumbai | Published: April 6, 2018 1:31:42 AM

The Reserve Bank of India (RBI) on Thursday said all payment system operators in the country must move to a system of storing data within India.

RBI, payment data, money, markets, economy, cryptocurrency, RBI cryptocurrencyThe Reserve Bank of India (RBI) on Thursday said all payment system operators in the country must move to a system of storing data within India.

The Reserve Bank of India (RBI) on Thursday said all payment system operators in the country must move to a system of storing data within India.
“It is observed that at present only certain payment system operators and their outsourcing partners store the payment system data either partly or completely in the country. In order to have unfettered access to all payment data for supervisory purposes, it has been decided that all payment system operators will ensure that data related to payment systems operated by them are stored only inside the country within a period of six months,” the central bank said in its statement on developmental and regulatory policies. The central bank also barred banks from doing business with entities engaged in dealing or settling virtual currencies (VCs). “In view of the associated risks, it has been decided that, with immediate effect, entities regulated by RBI shall not deal with or provide services to any individual or business entities dealing with or settling VCs. Regulated entities which already provide such services shall exit the relationship within a specified time,” RBI said in the statement. RBI deputy governor BP Kanungo said the central bank is also considering introducing a fiat-backed cryptocurrency. “In response to the emergence of private digital tokens all over the world, several central banks are debating the possibility of introducing a fiat digital currency. As opposed to the private digital tokens, these are insured by the central bank. They constitute the liability of the central bank and they will be in circulation in addition to the paper currency that we have. It also holds the promise of reducing the cost of printing of the notes,” Kanungo said. He added that RBI has constituted an inter-departmental committee which will explore the feasibility and desirability of issuing a digital currency by the central bank.

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