Guidelines pertaining to data localisation issued by Centre will make digital payments expensive and inefficient for the business to ensure safety, security and analytics to Indian banks and merchants, said Mastercard.
“When we talk about our lack of support for data localisation, it’s not caused so much by expenses,” said Ajaypal S Banga, President and Chief Executive Officer of Mastercard.
“It’s caused by the inefficiency of what that does to the ability to provide safety, security, and analytics to India’s banks and merchants,” he added.
“…You’re unable to learn from the learnings of one country and apply them to global platforms like ours to every country and… leverage the cost of learning by 1/200—meaning you learn in one country and it’s available to 200,” he said.
What India is doing is actually enabling both those benefits to India to be turned off.
The financial services giant has confirmed submitting a proposal to the Reserve Bank of India (RBI) about storing Indian transactions data locally at their technology centre based out of Pune as of October 6.