New Delhi: The Supreme Court on Thursday issued notices to Centre and internet giants Google, Facebook, Amazon and WhatsApp over a petition challenging the safety of data of Indian citizens collected by these companies for online payments.
The petition filed by Communist Party of India MP Binoy Viswam sought protection of data of millions of Indian users who are using Unified Payments Interface (UPI).
The petitioner alleged that Reserve Bank of India (RBI) and National Payments Corporation of India (NPCI), which regulate the UPI system, have failed as they have given permission to foreign entities for financial transactions.
It also alleged that data of Indian users will be at a high risk of being misused as these giants are US based and had violated laws and regulations several times.
The petitioner also brought to the court’s notice that all foreign companies have failed to follow the RBI’s previous order of storing the data only in India. Despite missing the October 2018 deadline set by the RBI, they are still operating in India as it is, the plea mentioned.
It also said that RBI and the NCPI have failed to take any action against the companies, thus “jeopardising the security of data of Indian users.”
“We will issue the notices,” a three-judge bench headed by Chief Justice of India SA Bobde stated.
“An entire regulatory framework should be put in place,” the bench underscored.
It also rejected the objection from the respondents that notice will prevent them from operating and could be seen as a “stay”.