CPI MP moves SC seeking protection of data collected on UPI platforms, prevention of misuse
Sep 10, 2020
New Delhi [India], September 11 : A PIL has been filed by Rajya Sabha MP Binoy Viswam in the Supreme Court against Google, Amazon, Facebook, and WhatsApp alleging that they are "not complying" with operating payment systems in India and that the data of Indian citizens collected on Unified Payments Interface (UPI) platforms is misused by corporations.
The plea in relation to payment services by Google, Amazon, Facebook, and WhatsApp sought direction for the Reserve Bank of India (RBI) and National Payment Corporations of India (NPCI) to come up with regulations for the protection of data from being misused by giant corporations.
Viswam asked how can RBI and NPCI allow payment services by these companies despite alleged violations of UPI guidelines.
The petitioner claimed that while the RBI and NPCI are required to and obligated to protect the data of Indian citizens, on the contrary, they compromising the interests of the people by allowing the "non-compliant foreign entities to operate its payment service in India."
"Millions of Indians use UPI platforms for making payments and with the RBI and NPCI allowing the Big Four Tech Giants to participate in this UPI ecosystem without much scrutiny, sensitive financial data of the Indian citizens are at risk of being misused," read the plea.
It further sought restrictions on Google Pay, Amazon Pay, Whatsapp Pay from sharing information with the parent company, or any third party under any circumstances.
The petition highlighted that it was the WhatsApp admitted position as on June 5 this year that it was yet to comply with data localization norms and added that RBI and NPCI still failed to take any action against WhatsApp.
Citing national security threats, Viswam sought directions to restrict the launch and operation of WhatsAppPay.
He prayed that WhatsApp should not be permitted to launch its full-scale payment service - WhatsApp Pay in India till all the requirements and norms are complied with.
