There may be more disagreements between the India and the United States than Russia and Iran as the US wants to prohibit data localisation to ensure that there is a free flow of information across borders.
This comes amid reports that major American IT companies are up in arms against the latest Indian directive which kicks off next week.
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.
It need be mentioned that the Reserve Bank of India or 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.
The central banker gave time till October 15 to comply with the mandate.
American financial companies are believed to have approached the Trump administration against an RBI directive.
The directive requires them to them to store in India any payment-related data from transactions that take place inside the country.
India has rejected their request of mirroring.
Mobile messaging platform WhatsApp has said it has built a system that stores payments-related data in India, in line with RBI’s data localisation policy.>