Economy Current Affairs - 2019

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RBI: Payments related Data to be stored only in India

Reserve Bank of India recently clarified that all Payment System Operators (PSOs) shall store entire payment data in systems located only in India. It means that the data related to payments must be stored in systems located only in India. This follows a clarification sought by PSOs on issue of data localization.

Key Highlights

Background: In April 2018 RBI had issued a directive on ‘Storage of Payment System Data‘ by which it had advised all system providers to ensure that within a 6 months period, entire data relating to payment systems operated by them is stored in a system only in India.

No Limit on Payment processing outside India:  In Frequently Asked Questions (FAQs) on certain implementation issues raised by Payment System Operators (PSOs), RBI had mentioned that there is no bar on processing of payment transactions outside India (if PSOs desires so) but after processing data shall be stored only in India and complete end-to-end transaction details should be part of data.

Sharing of Data: Depending upon nature or origin of transaction and with prior approval of RBI, data can be shared with overseas regulator, if required.

Transaction Details: Data should include end-to-end transaction details and information pertaining to transaction related to payment or settlement that is either gathered or processed or transmitted, as part of a payment message/instruction.

Data Type: The data could be relating to customer data such as name, mobile number, PAN details, Aadhaar number or even Payment-sensitive data like customer and beneficiary account details, payment credential- PIN, OTP and transaction data like originating and destination system information amount etc.

Data Processed Abroad: In case the data processing is done abroad, then data should be brought back from systems abroad to India not later than 1 business day or 24 hours from payment processing, whichever is earlier.

Month: Categories: Business, Economy & Banking

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Government to constitute working group for revision of Wholesale Price Index

Central Government has constituted Working Group for the revision of the current series of Wholesale Price Index (Base 2011-12). It will be chaired by Prof. Ramesh Chand, Member, NITI Aayog. Office of Economic Adviser, Department for Promotion of Industry & Internal Trade will be nodal office for Working Group. It will process report / recommendation of this Working Group for further necessary action.

Terms of Reference of the Working Group are:

  • It will select most appropriate Base Year for preparation of new official series Wholesale Price Index (WPI) and Producer Price Index (PPI) in India.
  • It will review existing commodity basket of current series of WPI and suggest additions and deletions of commodities in light of structural changes witnessed in economy since 2011-12.
  • It will also review existing price collection system for manufacturing sector and suggest changes for improvement. It will also decide on computational methodology to be adopted for monthly WPI/PPI.
  • It will examine existing Technical Advisory Committee on Series of Prices and Cost of Living approved compilation methodology of PPI approved and suggest further improvement in compilation and presentation.
  • It may also recommend roadmap for switch over from WPI to PPI. It will also examine method of computing linking factor adopted so far and suggest appropriate changes in method of computing linking factor.
  • It will suggest any other improvements as may be necessary for enhancing reliability of the official series of WPI / PPI.

Background

The current series of Wholesale Price Index (WPI) with 2011-12 as base year was introduced by Government in May 2017.  However, since 2011-12, significant structural changes have taken place in the economy. Therefore considering these factors it has become necessary to examine coverage of commodities, their weighting diagram and related issues pertaining to existing series of index numbers of WPI.

Month: Categories: Business, Economy & Banking

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