(Image source from: KVOA.com)

A new rule has taken effect in India that directs payment companies to store all transaction data on computers within the country.

Enacted in April by the Reserve Bank of India (RBI), the law gave payment companies six months to store transaction data of Indian consumers within the country to "ensure better monitoring" and "unfettered supervisory access to data."

Foreign payment vendors like American Express, Visa and Mastercard are probably in violation of the law as the deadline ended Monday.

According to PTI news agency, some global financial technology companies have sought an extension to the deadline although 80 percent of the financial players like Amazon have complied with the directive.

It was not at once known if India's central bank would take any action for non-compliance.

By Sowmya Sangam