Plugging Breach Risks

The recent emergence of digital platforms and payments systems has necessitated the need for regulatory intervention for the right reasons, at various levels, and for varied sectors, the world over.

India, too, is working on an umbrella Data Protection Framework law while sector regulators like the Telecom Regulatory Authority of India (TRAI) and the Reserve Bank of India (RBI) are trying to reduce the risk of data breaches by issuing sector specific directives.

RBI's October 15 deadline for digital payments system providers like Google and Amazon to store data relating to payments systems operated by them locally in India is one such directive. Those opposing the move and those favouring it should both realise its evolutionary nature. The spirit (of data protection and localisation laws that are in the making) is not to restrict cross-border flow of information, but to ensure that data is not misused and remains secure.