The <a href="https://www.wionews.com/india-news/ayodhya-case-mediation-failed-to-yield-results-daily-hearing-from-august-6-240161">Supreme Court</a> has given the <a href="https://www.wionews.com/india-news/reserve-bank-of-india-to-cut-rates-again-in-august-as-doves-prevail-report-238360">central bank</a> six weeks to report on whether <a href="https://www.wionews.com/business-economy/whatsapp-to-roll-out-payments-feature-in-india-this-year-238593">WhatsApp</a> had complied with data localisation norms as the Facebook-owned messenger gears up to launch a payments service in the country, a person involved in the matter said.

WhatsApp has been testing a peer-to-peer payments service for over a year in India, its biggest market by users, but local data storage norms have delayed an official launch.

Foreign payment companies were caught off guard last year by the <a href="https://www.wionews.com/business-economy/india-seen-set-for-fourth-interest-rate-cut-of-2019-240215">Reserve Bank of India</a>'s (RBI) directive that said all payments data should be stored "only in India" for "unfettered supervisory access".

This June it clarified the rules saying foreign payment firms can process transactions made in India outside of the country but the related data should be brought back for local storage within 24 hours.

WhatsApp faced an additional hurdle as a Delhi-based think-tank, the Centre For Accountability And Systemic Change, alleged in a petition to the Supreme Court last year that the firm was not compliant with payments data localisation rules.

It is in regard to this petition that the Supreme Court has now asked the RBI to file a response.

WhatsApp did not immediately respond to a request for comment while the Reserve Bank of India declined to comment.

Last week, WhatsApp's global head Will Cathcart said WhatsApp was all set to roll out its payments service in India this year and that it was now in full compliance with the data localisation norms.

On Friday, the Supreme Court also asked the federal government to make clear, within six weeks, its position on whether the company's grievance officer should be based in India, according to the person.

WhatsApp has a California-based grievance officer who handles India-related issues. Current Indian rules do not mandate a tech company to have such an executive stationed in the country - a rule the government wants to change.

The country's technology minister has said in parliament that New Delhi is seriously considering that social media firms "be required to locate their grievance officer in India".

WhatsApp has previously said it is working on having a grievance officer based in India.

The Supreme Court has given the central bank six weeks to report on whether WhatsApp had complied with data localisation norms as the Facebook-owned messenger gears up to launch a payments service in the country, a person involved in the matter said.

The Supreme Court has given the central bank six weeks to report on whether WhatsApp had complied with data localisation norms as the Facebook-owned messenger gears up to launch a payments service in the country, a person involved in the matter said. WhatsApp has been testing a peer-to-peer payments service for over a year in India, its biggest market by users, but local data storage norms have delayed an official launch. Foreign payment companies were caught off guard last year by the Reserve Bank of India's (RBI) directive that said all payments data should be stored "only in India" for "unfettered supervisory access". This June it clarified the rules saying foreign payment firms can process transactions made in India outside of the country but the related data should be brought back for local storage within 24 hours. WhatsApp faced an additional hurdle as a Delhi-based think-tank, the Centre For Accountability And Systemic Change, alleged in a petition to the Supreme Court last year that the firm was not compliant with payments data localisation rules. It is in regard to this petition that the Supreme Court has now asked the RBI to file a response. WhatsApp did not immediately respond to a request for comment while the Reserve Bank of India declined to comment. Last week, WhatsApp's global head Will Cathcart said WhatsApp was all set to roll out its payments service in India this year and that it was now in full compliance with the data localisation norms. On Friday, the Supreme Court also asked the federal government to make clear, within six weeks, its position on whether the company's grievance officer should be based in India, according to the person. WhatsApp has a California-based grievance officer who handles India-related issues. Current Indian rules do not mandate a tech company to have such an executive stationed in the country - a rule the government wants to change. The country's technology minister has said in parliament that New Delhi is seriously considering that social media firms "be required to locate their grievance officer in India". WhatsApp has previously said it is working on having a grievance officer based in India.

Supreme Court asks RBI to confirm WhatsApp's compliance with local data rules

The United States has told India it is considering caps on <a href="https://www.wionews.com/world/h-1b-visa-approvals-in-2018-dropped-10-us-immigration-data-224421">H-1B work visas</a> for nations that force foreign companies to store data locally, three sources with knowledge of the matter told Reuters, widening the two countries' row over tariffs and trade.

The plan to restrict the popular<a href="https://www.wionews.com/world/us-to-propose-hike-in-h-1b-application-fee-labour-secretary-216581"> H-1B visa programme,</a> under which skilled foreign workers are brought to the United States each year, comes days ahead of US Secretary of State Mike Pompeo's visit to New Delhi.

India, which has upset firms such as Mastercard and irked the US government with stringent new rules on data storage, is the largest recipient of these temporary visas, most of them to workers at big Indian technology firms.

The warning comes as trade tensions between the United States and India have resulted in tit-for-tat tariff actions in recent weeks. From Sunday, India imposed higher tariffs on some US goods, days after Washington withdrew a key trade privilege for New Delhi.

Trump administration to ban work permits for spouses of H-1B holders

<div class="videoWrapper trancodeVideo"><iframe allowfullscreen="" autoplay="1" class="includeVideo" frameborder="0" height="350" src="https://www.wionews.com/videos/trump-administration-to-ban-work-permits-for-spouses-of-h-1b-holders-221976/embed" style="width:100%;max-width:560px;" width="560"></iframe></div>

Two senior Indian government officials said on Wednesday they were briefed last week on a US government plan to cap H-1B visas issued each year to Indians at between 10% and 15% of the annual quota.

There is no current country-specific limit on the 85,000 H-1B work visas granted each year and an estimated 70% go to Indians.

Both officials said they were told the plan was linked to the global push for "data localisation", in which a country places restrictions on data as a way to gain better control over it and potentially curb the power of international companies. US firms have lobbied hard against data localisation rules around the world.

A Washington-based industry source aware of India-US negotiations also said the United States was deliberating capping the number of H-1B visas in response to global data storage rules. The move, however, was not solely targeted at India, the source said.

"The proposal is that any country that does data localisation, then it (H-1B visas) would be limited to about 15% of the quota. It's being discussed internally in the U.S. government," the person said.

The US Embassy in New Delhi did not respond to a request for comment. A spokeswoman for the US Trade Representative's office (USTR) referred questions to the State Department, which did not immediately respond to a request for comment.

Most-affected by any such caps would be India's more than $150 billion IT sector, led by Tata Consultancy Services and Infosys Ltd, which uses H-1B visas to fly engineers and developers to service clients in the United States, their biggest market.

The Ministry of External Affairs has sought an "urgent response" from officials on how such a move by the United States could affect India, said one of the two government officials, who declined to be named due to the sensitivity of the matter.

The Ministry of External Affairs, as well as the commerce department that is typically involved in such discussions, did not respond to an e-mail seeking comment.

Since last year, the US administration has been upset that US firms such as Mastercard and Visa suffer due to regulations in several countries that it says are protectionist and increasingly require companies to store more data locally.

India last year mandated foreign firms to store their payments data "only in India" for supervision, and New Delhi is working on a broad data protection law that would impose strict rules for local processing of data it considers sensitive.

While governments the world over have been announcing stricter data storage rules to better access data in their jurisdictions, critics say restricting cross-border data flows hurts innovation and raises companies' costs.

In March the USTR, in a press note, highlighted "key barriers to digital trade", citing data-flow restrictions in India, China, Indonesia and Vietnam, among others.

At a US-India Business Council event last week, Pompeo said the US administration would push for a free flow of data across borders, not just to help US companies, but also to secure consumers' privacy.

The United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally, three sources with knowledge of the matter told Reuters, widening the two countries' row over tariffs and trade.

The United States has told India it is considering caps on H-1B work visas for nations that force foreign companies to store data locally, three sources with knowledge of the matter told Reuters, widening the two countries' row over tariffs and trade. The plan to restrict the popular H-1B visa programme, under which skilled foreign workers are brought to the United States each year, comes days ahead of US Secretary of State Mike Pompeo's visit to New Delhi. India, which has upset firms such as Mastercard and irked the US government with stringent new rules on data storage, is the largest recipient of these temporary visas, most of them to workers at big Indian technology firms. The warning comes as trade tensions between the United States and India have resulted in tit-for-tat tariff actions in recent weeks. From Sunday, India imposed higher tariffs on some US goods, days after Washington withdrew a key trade privilege for New Delhi. Trump administration to ban work permits for spouses of H-1B holders Two senior Indian government officials said on Wednesday they were briefed last week on a US government plan to cap H-1B visas issued each year to Indians at between 10% and 15% of the annual quota. There is no current country-specific limit on the 85,000 H-1B work visas granted each year and an estimated 70% go to Indians. Both officials said they were told the plan was linked to the global push for "data localisation", in which a country places restrictions on data as a way to gain better control over it and potentially curb the power of international companies. US firms have lobbied hard against data localisation rules around the world. A Washington-based industry source aware of India-US negotiations also said the United States was deliberating capping the number of H-1B visas in response to global data storage rules. The move, however, was not solely targeted at India, the source said. "The proposal is that any country that does data localisation, then it (H-1B visas) would be limited to about 15% of the quota. It's being discussed internally in the U.S. government," the person said. The US Embassy in New Delhi did not respond to a request for comment. A spokeswoman for the US Trade Representative's office (USTR) referred questions to the State Department, which did not immediately respond to a request for comment. Most-affected by any such caps would be India's more than $150 billion IT sector, led by Tata Consultancy Services and Infosys Ltd, which uses H-1B visas to fly engineers and developers to service clients in the United States, their biggest market. The Ministry of External Affairs has sought an "urgent response" from officials on how such a move by the United States could affect India, said one of the two government officials, who declined to be named due to the sensitivity of the matter. The Ministry of External Affairs, as well as the commerce department that is typically involved in such discussions, did not respond to an e-mail seeking comment. Since last year, the US administration has been upset that US firms such as Mastercard and Visa suffer due to regulations in several countries that it says are protectionist and increasingly require companies to store more data locally. India last year mandated foreign firms to store their payments data "only in India" for supervision, and New Delhi is working on a broad data protection law that would impose strict rules for local processing of data it considers sensitive. While governments the world over have been announcing stricter data storage rules to better access data in their jurisdictions, critics say restricting cross-border data flows hurts innovation and raises companies' costs. In March the USTR, in a press note, highlighted "key barriers to digital trade", citing data-flow restrictions in India, China, Indonesia and Vietnam, among others. At a US-India Business Council event last week, Pompeo said the US administration would push for a free flow of data across borders, not just to help US companies, but also to secure consumers' privacy.

US tells India it is considering caps on H-1B visas to deter data rules: Sources

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