The present standard interpretation of quantum mechanics invokes nonlocality and state reduction at space-like separated points during measurements on entangled systems. While there is no understanding of the physical mechanism of such nonlocal state reduction, the experimental verifications of quantum correlations different from that predicted by local realistic theories have polarized the physicists' opinion in favour of nonlocality. I show conclusively that there is no such spooky state reduction, vindicating the strong views against nonlocality held by Einstein and Popper. Experimental support to this proof is also discussed. The Bell's inequalities arise due to ignoring the phase information in the correlation function and not due to nonlocality. This result goes against the current belief of quantum nonlocality held by the majority of physicists; yet the proof is transparent and rigorous, and therefore demands a change in the interpretation of quantum mechanics and quantum measurements. The hypothesis of wave function collapse is inconsistent with experimental observations on entangled correlated systems.