The World has seen a huge increase in the number of cyber crimes, cyber-frauds, ransomware attacks, identity thefts. Recently Facebook was believed to have been a victim of a hacker attack that resulting in over 50 million users getting locked out of their accounts. India has not been immune to this. We read about many cyber crime cases where many hapless users lose money from their accounts. The amounts that people have lost are in crores. Hence, it has become necessary to build an infrastructure that can protect data and can pro-actively prevent these attacks.
India being the second most populated nation in the world, generates a large amount of data. Data regarding financial transactions, shopping patterns, travel habits, etc, can be easily used by criminals to create transactions and bank transfers that look legitimate and are difficult to trace. As India is a populous country, it is very easy for criminals to cover their tracks in a mountain of data.
A lot of money that is stolen using frauds is used for nefarious activities such as drug smuggling, human trafficking and other illegal activities. Hence, it has become very important for all banks, tech companies and the RBI to come together and combat cyber criminals.
As per RBI guidelines, all financial institutions and fintech companies are required to store their domestic transactions data within India. The objective of localizing data is to ensure that all the personal and private data related to is stored within the country. This will ensure the safety and security of the Indian payment ecosystem. There are possibilities of non-state actors targeting companies with this data. It is tough to keep an eye on this data when it isn’t in your country. With this RBI’s directive, that consumer data will be available in India itself.
This mandate was welcomed by major Indian fin-tech companies, such as Paytm, Freecharge and PhonePe, but it has not gone down well with other global finance companies. Due to the RBI’s directive, Visa and Mastercard, two global payment giants, have started storing financial data locally. Experts believe that this move will bring our country’s financial system under the complete control of the RBI. This is sure to put the country on a path to build strong cyber defenses.
China, Russia, and North Korea have already adopted the strategy of storing data locally within their country. They have adopted suitable measures to ensure the safety of information.
Complying with this data directive will be tough for many international finance companies as they operate in over 200 countries. Not all their functions/ tech teams sit in the same country and hence it will be difficult to localize each and every process. Consider this – a lot of Facebook’s servers are located in the USA, Ireland and Finland. To consider building an infrastructure to support their business and store all the data in all 200 countries will be a tough task. It is quite possible that they may cease operations in some. However, that is where the Indian advantage comes into play.
With a huge population, it is impossible to ignore India. Thus, most tech and finance corporations will soon comply and implement the directives of the RBI. This is turn is bound to create new job roles in many corporates.
BSE Institute’s GFMP Edge Certified Data Scientist program helps develop the skills needed for machine learning and data analytics. With the RBI’s directive, there will be a requirement of data scientists and analysts who will be needed to monitor and manage all financial transactions.
With BSE Institute’s data analyst certification program, one can understand analyze the structure of data-sets and databases, including big data of large financial data-sets which is used for marketing and other business functions.