The never-ending saga of WhatsApp has taken another turn. In an affidavit submitted to the Supreme Court this week, the RBI said that WhatsApp does not have the requisite permission to start full-scale operations of its UPI payment service in the country. A few weeks of WhatsApp on Brazil to be suspended by the country’s central bank after the report comes.
Meanwhile, in India, RBI said that it is concerned about compliance with WhatsApp, or lack of data-localization laws of the land. The Indian banking regulator said in its affidavit: “() The Reserve Bank had investigated the said reports and the responses of NPCI (National Payments Corporation of India) and was concerned that WhatsApp may store some payment data elements outside India after permission. having had. The time indicated in the circular and frequently asked questions on ‘storage of payment system data’ issued by RBI on June 26, 2019.
This is the latest in a long line of failures for WhatsApps and its parent company, Facebook for WhatsApp Pay. The service was originally expected to be launched back in 2017-2018 in India. However, it remained limited for more than two years due to concerns over not complying with the country’s data localization regulations.
At the end of last year, RBI directed NPCI not to allow WhatsApp to roll out in India. The regulator cited concerns about non-compliance with WhatsApp’s federal regulations, stating that there is a rationale behind its decision. However, later reports suggested that the company had overcome all regulatory hurdles. This year it was expected to eventually launch the much-awaited service after receiving all regulatory approvals.