The RBI mandate on data localisation is not the best solution to address concerns regarding information security, global cards major Visa said on Friday.
However, the company's chief executive Alfred F Kelly Jr made it clear that it believes in compliance with the local laws.
Its rivals Mastercard and American Express have been penalised for failing to comply with the data localisation requirement, which also included a temporary halt on issuing new cards.
"So there are countries like India who have decided that one of the ways to protect data is to localise it. I don't necessarily think that is necessarily the best answer," Kelly said while speaking at the Global Business Summit here.
"...we've worked very hard to make sure that we are compliant with the data localisation rules that were put in place by the RBI. We also look at our role in the ecosystem with regulators in the case, sometimes with top competitors, to make sure that we are doing things that are good for the overall ecosystem," he added.
Kelly said his company witnessed 40 per cent growth last year and now enjoys a 50 per cent market share in India.
To a question on competition, especially from the National Payments Corporation of India's successful UPI platform, he said Visa does not feel threatened by it.
"And I actually look at the RBI as one of the more progressive regulators around the world. I think the RBI is a leader in trying to displace cash. They are a leader in trying to introduce more protections into the ecosystem," he noted, adding that compliance to regulations is the top priority for the company.
Replying to another question, Kelly said India has undertaken phenomenal changes in the last five years since demonetisation and added that regulators are trying to figure out what are the right things to do.
"I think the intentions of the RBI are very positive. I think the RBI tends to listen well. But that said, there have been times where there's been some lack of clarity or a change in position from time to time that makes it challenging. But again, that happens in other markets as well," he said.
There have been many regulatory changes because data has emerged as a new frontier or a powerful ingredient which helps companies gain competitive advantage, he added.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Mar 11 2022 | 7:53 PM IST