The SC had recently asked RBI to update it on WhatsApp’s data localisation status.
This was RBI’s response dated November 6 to the SC as the apex court had asked it to update it on WhatsApp’s data localisation compliance status in August.
RBI urged the SC as well as NPCI not to allow WhatsApp’s full-scale payments launch in India.
RBI wrote in its letter: “The RBI has examined the said reports (by NPCI) and the responses of NPCI and is of the considered view that WhatsApp is storing the following payment data elements outside India beyond the permitted timelines indicated in the circular and frequently asked questions (FAQs) on storage of payments system data issued by RBI on June 26, 2019.”
The Centre for Accountability and Systemic Change (CASC), a think-tank, had filed a petition in the SC challenging WhatsApp’s compliance standards and absence of a local grievance officer in India. RBI was made a party to it.
The latest development formally damages WhatsApp’s aspirations to have a payments play here on the fast-growing UPI network.