Reserve Bank of India has instructed the National Payments Corporation of India (NPCI) to not allow WhatsApp to start a payment service in India.
The move came after RBI has submitted a report in Supreme court Indian stated that Facebook-owned company is non-compliant with data localization norms.
“If WhatsApp doesn’t comply with the data localization norms, rules, and regulations of the IT Act, then there is no question of granting new permission,” Pavan Duggal, cyber law expert said.
According to RBI, WhatsApp payments service is storing various payment data outside India, including transaction ID. In the past, its financial data is being compromised and that impacted the users
WhatsApp payment service is in beta since 2017. Users need a phone number with the country code for India in order to use Payments. They also need a bank account, where UPI is supported in order to use the new feature since WhatsApp is relying on this platform for the transactions.