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A data analytics company wants to send Indian customers' personal data to a processor abroad. It finds that a sectoral Indian law imposes stricter restrictions on such transfers than the DPDP Act. Under Section 16 of the DPDP Act, 2023, what is the position?

The stricter sectoral law continues to apply. Section 16(2) of the DPDP Act, 2023 says nothing in that section restricts any Indian law giving a higher degree of protection or restriction on cross-border transfer of personal data. The company must therefore comply with the stricter law as well.

  1. AThe DPDP Act prevails and the sectoral restriction lapses
  2. BThe sectoral law continues to apply, as Section 16 does not restrict any Indian law providing higher protection or restriction on transferCorrect
  3. CBoth laws are void to the extent of inconsistency
  4. DThe company must obtain the sectoral regulator's permission only if the Central Government has notified the destination country

Explanation

Section 16(2) states that nothing in the section restricts the applicability of any Indian law that provides a higher degree of protection for, or restriction on, transfer of personal data outside India. So the stricter sectoral law continues to apply regardless of any notification under Section 16(1).

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