Data Localisation

Prelims level : Economy Mains level : GS- III: Technology, Economic Development, Bio diversity, Environment
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  • RBI last year mandated companies to store their payments data “only in India” so that the regulator could have “unfettered supervisory access”.
  • The RBI will examine concerns around its strict data localisation rules that require storing of customer data exclusively in India without creating mirror sites overseas.

What is Data Localisation:

  • Data localisation laws refer to regulations that dictate how data on a nation’s citizens is collected, processed and stored inside the country.

Significance of Data Localisation:

  • Data localisation is critical for law enforcement.
  • Access to data by Indian law agencies, in case of a breach or threat, cannot be dependent on the whims and fancies, nor on lengthy legal processes of another nation that hosts data generated in India.

What India can do:

  • It may not be wise for India to have the liberal rules as developed nation.

Legislation backup:

  • Only Mandatory rule on data localisation in India is by the Reserve Bank of India for payment systems. Justice Sri krishna Committee report – to identify key data protection issues in India and recommend methods of addressing them”.
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