The RBI has directed NPCI to block full-scale launch of whatsapp payments app. The reasons behind the ban are;
- Whatsapp is storing datas outside India past accepted timezones, RBI claims.
- Worries about records safety following Pegasus spyware debacle also influenced the decision of RBI.
- Whatsapp Payments app which is based totally on the unified payments interface (UPI) is lagging behind schedule and fixed in beta release for over a year.
Following the pegasus spyware debacle, the Reserve Bank of India (RBI) has informed the courtroom that whatsapp is non-compliant with facts and localisation norms. RBI has directed the country wide payments organization of India (NPCI) to no longer permit a complete-scale release of the payments service by way of the facebook-owned business enterprise.
RBI’s reaction came within the wake of the government reaching out to NPCI, which manages the UPI and RBI’s large worries round data protection in the social media platform’s payments.
“The RBI has tested the said reports (through NPCI) and the responses of NPCI is of the view that Whatsapp is storing the subsequent payment records elements outdoor India past the permitted timelines indicated inside the circular and regularly requested questions (faqs) on garage of payments system information issued through RBI on june 26, 2019,” stated RBI, as quoted by TOI.
What was wrong with WhatsApp Payments app?
- Fake News
Initially, Indian government’s primary issue with Whatsapp turned into a big problem as the platform was used to unfold fake information, incorrect information and other questionable content material affecting national protection. Following the complaints of the messaging platform being used to spy on people, the Ministry of Electronics and Information Technologya (MEITY) has been operating on formulating regulations for social media structures which includes whatsapp traceability.
Further adding to the badluck of Whatsapp came up the Pegasus spyware controversy. It become alleged that the instant messaging carrier platform became used by an Isreali spyware Pegasus to spy on Indian users. The users targeted were primarily journalists, lecturers, attorneys and activists. The authorities then started wondering whatsapp’s talents to handle something as sensitive as digital payments.
Source: https://inc42.com/buzz/whatsapp-payments-launch-hits-rbi-roadblock/
