UPSC Prelims 2019 · Question 27 of 99

UPSC Prelims 2019 question on Payment Data Localisation

Consider the following statements:

The Reserve Bank of India's recent directives relating to 'Storage of Payment System Data', popularly known as data diktat, command the payment system providers that

1. they shall ensure that entire data relating to payment systems operated by them are store in a system only in India.

2. they shall ensure that the systems are owned and operated by public sector enterprises.

3. they shall submit the consolidated system audit report to the Comptroller and Auditor General of India by the end of the calendar year

Which of the statements given above is/are correct?

  1. 1 only
  2. 1 and 2 only
  3. 3 only
  4. 1, 2 and 3
Show answer

Answer: A. 1 only

Verdict

Correct statement: 1 only → Option (a).

Statement by statement

Statement 1 – CORRECT: The Reserve Banks directive related to Storage of Payment System Data provides that all system providers shall ensure that the entire data relating to payment systems operated by them are stored in a system only in India.

Statement 2 – INCORRECT: There is no requirement that the systems must be owned and operated by public sector enterprises. The directive applies to all payment system providers regardless of ownership.

Statement 3 – INCORRECT: The consolidated system audit report is to be submitted to the Reserve Bank, not to the Comptroller and Auditor General of India. It must be submitted latest by October 15, 2018.

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