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CS Professional · Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Data Analytics and Law

A Bengaluru analytics firm hands a client's customer records to a vendor, and the vendor's staff publish them online. Under the DPDP Act, 2023, the Central Government's power regarding cross-border processing of personal data (Section 16) is best described as which of the following?

Under Section 16(1) of the DPDP Act, 2023, the Central Government may by notification restrict a Data Fiduciary from transferring personal data for processing to notified countries or territories outside India. It is not a blanket ban or pre-approval requirement, and stricter Indian laws continue to apply.

  1. AIt may, by notification, restrict transfer of personal data by a Data Fiduciary for processing to a notified country or territory outside IndiaCorrect
  2. BIt requires every transfer of personal data outside India to be pre-approved by the Central Government
  3. CIt prohibits all transfers of personal data outside India unless the Data Principal pays a fee
  4. DIt overrides any other Indian law that imposes a stricter restriction on transfers

Explanation

Section 16(1) lets the Central Government restrict transfers to countries or territories it notifies. It is a negative-list approach, not blanket pre-approval. Section 16(2) preserves other Indian laws giving higher protection, so the option claiming override is wrong.

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