US concerned over data localisation

The US on Thursday expressed concern over the recent proliferation of digital protectionism worldwide, including data localisation.

“We are concerned by the recent proliferation of digital protectionism worldwide, including data localisation and other data restriction measures,” a State Department spokesperson told PTI.

The spokesperson, however, refrained from naming India given that several US companies have opposed a recent Reserve Bank of India (RBI) move in data localisation.

“The United States seeks to facilitate digital trade, the growth of the digital economy, and data security,” the spokesperson said. Several companies like Visa, Mastercard, American Express, Amazon and PayPal have said that they needed more time to comply with the RBI orders in this regard which came into effect on October 15.

Last week, two top American Senators wrote a letter to Prime Minister Narendra Modi, urging him to reconsider the RBI’s decision on data localisation.

Data localisation is an act of storing data on any device that is physically present within the borders of a particular country where the data was generated.

The RBI, in a circular in April, said all system providers will have to ensure that the entire data relating to payment systems operated by them are stored in a system only in India.