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2 of 3|Industry Compliance
reading 15 min•Sector Requirements
Banking
Financial data and RBI regulations.
🎯 Learning Objectives
- ▸ Understand RBI data localisation rules
- ▸ Analyze KYC and AML requirements
Data Localisation
The RBI mandates that all payment system data (like credit card details, UPI transactions) must be stored only in India. This is a sectoral localisation requirement that operates alongside the DPDPA.
While the DPDPA allows cross-border transfers by default, the RBI rules restrict it. Banks and fintechs must comply with the stricter of the two.
📖 Glossary
- KYC
- Know Your Customer, the process of verifying the identity of clients.
- AML
- Anti-Money Laundering, laws and regulations designed to stop the generation of income from criminal activity.
🔑 Key Takeaways
- RBI mandates payment data to be stored in India.
- Banks must comply with both DPDPA and RBI guidelines.
- KYC data must be protected with high security.
📚 Further Reading
- RBI Guidelines on Storage of Payment Data — RBI (2018)
Course Author
Shilpi Kulshrestha
Shilpi is a corporate lawyer with over a decade of experience in data protection, company law, and regulatory compliance. She has advised 50+ startups and enterprises on DPDPA readiness, privacy gover...