The Reserve Bank of India (RBI) has issued revised guidelines for data storage policy. Meanwhile, the apex bank has rejected payment gateway companies’ proposal.
These revised guidelines will assist in discouraging payment aggregators and merchants such as Amazon, Flipkart, and Netflix from storing customer credit card information on their servers or databases.
Consider this: the new change requires customers who use debit or credit cards to provide their 16-digit card number every time they make a transaction. This is done to protect the card information and to ensure that payment operators do not store the data on the system.
This new change is expected to go into effect in January 2022, and customers will be required to enter their 16-digit card number, expiry date, and CVC for each transaction. This step is taken to ensure the data’s safety and security.
This entire e-commerce payment model is based on data storage, and businesses use it to market new items to customer demographics based on information availability.
With this new change, UPI may become a viable option for the preferred method of payment. UPI payment methods have grown in popularity in recent years due to their quick and simple payment systems.
The new guidelines were supposed to be implemented in July, but the apex bank had to postpone them by six months because banks were not prepared.