Visa CEO: Data localisation not necessarily the best answer
- The CEO was talking about RBI's circular ‘Storage of Payment System Data’ at a Global Summit.
- CEO further said, the company believes in compliance with local laws.
Visa chief executive Alfred F Kelly Jr believes RBI's mandate on data localisation is not the best solution for addressing concerns related to information security. The CEO was talking about RBI's circular "Storage of Payment System Data" at a Global Summit on Friday. However, he made it clear that the company believes in compliance with local laws.
In the Summit, Kelly said "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," reported by PTI.
He added, "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."
Visa's peers namely Mastercard and American Express have been penalised by RBI for non-compliance with the data localisation requirement - which also resulted in a temporary halt on issuing new cards.
"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," Kelly further said.
Kelly believes RBI is one of the more progressive regulators around the world. He added, "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."
Pointing about the company's strong growth in the country, Kelly said Visa witnessed 40% growth last year and now enjoys a 50% market share in India.
RBI issued a circular in April 2018 on ‘Storage of Payment System Data’ where it advised all system providers to ensure that the entire data relating to payment systems operated by them is stored in a system only in India. Payment System Operators (PSOs) have sought clarification on certain implementation issues, from time to time, from the central bank.
When asked about competition from the National Payments Corporation of India's successful UPI platform, the Visa chief said the company "does not feel threatened by it."
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First Published:11 Mar 2022, 10:49 PM IST
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