US wants to make sure India’s data localisation plan does not stymie growth in transactions: Steven Mnuchin

US wants to make sure India’s data localisation plan does not stymie growth in transactions: Steven Mnuchin

The US wants India to ensure that its data localisation plan does not’stymie growth’ and monetary transaction businesses are treated’fairly’,” Treasury Secretary Steven Mnuchin has said. Mnuchin insisted that America has no difficulty if countries want to have data for regulatory purposes as long as they do not eliminate it . Data localisation is the practice of storing data on servers located within the territory of a country.

The Reserve Bank of India had, in April last year, requested payment firms to ensure their data were saved only on local servers, setting a tight two-year deadline. US firms like Amazon, Mastercard, Visa and Google have lobbied against data localisation rules around the world including India, stressing that it would make their operations costly and more complex. Mnuchin, who was in India, said that this had been an issue of discussion between the two nations.

The US has been on the issue of data localisation, Mnuchin told members of the House Financial Services Committee during a Congressional hearing on Thursday. ‘In my recent trip, we’ve had conversations. We’ve been dealing with them within the last year on this issue. We should ensure, one, US businesses are treated fairly and can compete that,’ he said. ‘We have no difficulties with if countries want to have data for regulatory purposes. It’s the matter of then eliminating data out it, and I think, we’re in a global economy, as you know,’ Mnuchin stated.

‘So this is a complicated problem that we continue to work on to be sure that our financial providers are treated fairly,’ said the Treasury Secretary in response Frank Kustoff. ‘We’ve read the media accounts about as it pertains to this data localisation, India is attempting to raise the bar, and frankly the constraints on trade as it relates to companies and startups. Can you discuss what the obstacles are for US companies operating now in India and what impact that could have?’ Kustoff asked.

Describing data security as a matter of critical importance, Mnuchin said the US wants to make sure that data localisation’doesn’t stymie growth’ .

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