India may shut down BlackBerry services if security concerns are not addressed by Aug 12, 2010. The ultimatum comes a day after the company agreed to hand over user codes that would let Saudi Arabian authorities monitor its BlackBerry Messenger.

RIM operates it own servers unlike Apple and others, that use telecom providers. Hence governments and law enforcement have a difficulty gettting access to the data.

A senior Indian government official told Reuters that mobile phone operators could be asked to shut down RIM’s Enterprise Email and Messenger services temporarily as a last alternative, if RIM does not agree to offer access to data.

India, like several countries in Europe, Middle East and North Africa, want access to encrypted Blackberry communication, which has been linked to militant activity including the Mumbai attacks in 2008 that killed 166 people.

Recently, the German government has banned politicians and civil servants from using the BlackBerry and the European Union Commission this month rejected the BlackBerry in favor of Apple’s iPhone.