What is Data Localization for Payment Aggregators?
Nexa Consultancy | Startup & Finance Glossary
A mandate by the Reserve Bank of India (RBI) that requires all licensed Payment Aggregators (PAs) and Payment Gateways (PGs) to store all payment data they handle exclusively on servers located within India.
Startup Example: A FinTech startup operating as a Payment Aggregator cannot process a transaction on AWS servers in Singapore. The entire end-to-end transaction data, from collection to settlement, must reside on servers physically present in India.
This is a critical aspect of our advisory for FinTech startups.