WhatsApp Doesn’t Have Permission to Start Full-Scale Operations in India: RBI

WhatsApp Doesn't Have Permission to Start Full-Scale Operations in India: RBI
The endless saga of WhatsApp Pay has taken yet one more flip. In an affidavit to the Supreme Court this week, the RBI asserted that WhatsApp doesn’t have the requisite permissions to start out full-scale operations of its UPI funds service within the nation. The report comes weeks after WhatsApp Pay was suspended in Brazil by the nation’s central financial institution.

Meanwhile, in India, the RBI says it’s involved about WhatsApp’s compliance, or lack thereof, with the nation’s data-localization legal guidelines. In its affidavit, the Indian banking regulator stated: “(The) Reserve Bank had examined the said reports and the responses of the NPCI (National Payments Corporation of India) and was concerned that WhatsApp was storing some payment data elements outside India beyond the permitted timelines indicated in the circular and the Frequently Asked Questions on ‘Storage of Payment System Data’ issued by RBI on June 26, 2019”.

This is the newest in a protracted line of setbacks for WhatsApp and its guardian firm, Facebook, over WhatsApp Pay. The service was initially anticipated to launch in India again in 2017-2018. However, it has remained in limbo for greater than two years on account of issues over its non-compliance with the nation’s information localization rules.

Late final yr, the RBI directed the NPCI to not permit WhatsApp Pay to be rolled out in India. The regulator cited issues about WhatsApp’s non-compliance of federal rules because the rationale behind its choice. However, subsequent stories steered that the corporate had cleared all regulatory hurdles. It was lastly anticipated to launch the much-anticipated service after supposedly getting all regulatory approvals this yr.

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