Stock Market

Does WhatsApp follow data norms, SC asks RBI

   Download Android App    Share in      FullScreen   CheckVideos

Bengaluru: The Supreme Court has directed the RBI to submit within six weeks an affidavit on whether social messaging platform WhatsApp had complied with the banking regulator’s rules requiring payment service providers to store data locally. The order on Friday came after a hearing on a PIL filed by the Centre for Accountability and Systemic Change (CASC), which has sought to stop WhatsApp from launching a payments service until it complies with the RBI’s circular on data localisation.

WhatsApp should also appoint a grievance officer who is based in India, according to the CASC plea. The April 2018 RBI circular requires all data related to payment systems to be stored only in India, to ensure better monitoring of payment services providers.

In March, the RBI told the top court that WhatsApp had not complied with data localisation rules for its yet-tobe launched payment service. WhatsApp’s payment feature, called WhatsApp Pay, is designed to run on the Unified Payments Interface (UPI) — developed by the National Payments Corporation of India — which allows users to pay others or do business transactions through their bank accounts.

Until May this year, the US-based company had only sought approval to mirror or copy payments data within India, while storing the same on servers overseas. WhatsApp Pay in Beta Mode Since Feb 2018Once approved, WhatsApp Pay is expected to compete with established payments service operators Google Pay, Amazon Pay and Paytm. WhatsApp’s lawyer Kapil Sibal told the apex court on Friday that the encrypted messaging app has complied with the rules and the company would submit a report to the NPCI soon. Appearing on behalf of the RBI, additional solicitor-general Aman Lekhi said details of WhatsApp’s compliance will be submitted to the NPCI in about three to four weeks, following which the RBI will take a further two weeks to file its report before the top court. “The bench granted RBI time of six weeks to file the compliance affidavit.

If the same is not done, the petitioner will be at liberty to amend the petition and the Bench will hear it accordingly,” said Virag Gupta, an advocate representing CASC. The Facebook-owned WhatsApp — which has about 400 million users in India — declined to comment on the court proceedings.

An email sent to the RBI did not elicit a response. WhatsApp Pay has been in beta mode since February last year and is restricted to 1 million users in the country pending regulatory approval. “We’re excited to have launched a successful pilot of WhatsApp Payments on the UPI standard, and we are looking forward to expanding it,” Will Cathcart, global head of WhatsApp said last week.

“We can’t wait to provide this service to our users across India this year.” Separately, IT minister Ravi Shankar Prasad asked WhatsApp last month to appoint a grievance officer based in the country.

WhatsApp has so far resisted the demand, saying the rules do not require that.

Its India grievance officer, Komal Lahiri, is currently based in the United States. WhatsApp is also fighting a government demand to enable traceability on its platform, arguing that it would violate user privacy.




Unlimited Portal Access + Monthly Magazine - 12 issues-Publication from Jan 2021

Buy Our Merchandise (Peace Series)

 

Contribute US to Start Broadcasting


It's Voluntary! Take care of your Family, Friends and People around You First and later think about us. Its Fine if you dont wish to contribute and if you wish to contribute then think about the Homeless first and Feed them. We can survive with your wishes too :-). You can Buy our Merchandise too which are of the finest quality.

Debit/Credit/UPI

UPI/Debit/Credit

Paytm

STRIPE

Details
Category: Stock Market


21