India's push for data localisation is not a "protectionist" approach but it is to "manage" local interests, head of a top Indian industry body said here on Tuesday.
Data localisation requires data about residents be collected, processed, and stored inside the country, often before being transferred internationally, and usually transferred only after meeting local privacy or data protection laws.
Addressing a global Fintech industries and expertise event, Rashesh Shah, President of the Federation of Indian Chambers of Commerce and Industry (FICCI) underlined the importance of leveraging technology for scaling up start-up eco-systems.
"It is not a big ask," said Shah who presented the FICCI views on the latest technologies at the ongoing Singapore Fintech Festival.
"Data localisation is not protectionist, it's to manage local interests," he said amid the row over the issue.
The Reserve Bank of India, in April, had issued a circular instructing all payments system providers like Mastercard, Visa, American Express in the country to ensure that data relating to systems operated by them is stored only in India and had set a deadline of October 15.
Although 80 per cent of the players operating in India have complied with the RBI directive, some global financial technology companies have reportedly sought an extension to the October 15 timeline.
The central bank's data localisation policy had elicited mixed response from the payment services industry. While some of the prominent domestic payment companies like Paytm and PhonePe have been supportive of the dictum, global players like Google (that offers Google Pay) had argued for free movement of data.
Speaking on "India Market Deep Dive", he also made it clear that there was no need to "lose hope on non-use of Adhaar by Fintech companies."
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