(Image source from: The Hindu)

The Reserve Bank of India is standing steadfast on a directive to oblige global payment firms to stock customer data in India, defying calls from United States companies to dilute a command that would cost millions of dollars, said people acquainted with the issue.

The payment companies worried about India's data onshoring move could set a case in point and nudge else major governments to apply akin rules at a time when there is enhanced scrutiny on how companies globally manage their customer's data.

The industry's scuffle with Reserve Bank also come as Prime Minister Narendra Modi sharply pushes digital and cashless modes of payment that leave an electronic trail as part of a campaign to crack down on black money.

The RBI said storing data locally would help "ensure better monitoring".

To dilute or reverse the directive of a joint lobbying effort by American Express Co, Mastercard Inc and Visa Inc failing to shift the central bank's position, with RBI telling the firms in a meting this month to comply, not complain.

Though RBI decline to comment, the government source confirmed that the central bank was unlikely to back down its plans.

By Sowmya Sangam