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Under Section 16 of the Digital Personal Data Protection Act, 2023, how does the Central Government regulate transfer of personal data by a Data Fiduciary for processing outside India?

Under Section 16 of the DPDP Act, 2023, the Central Government may, by notification, restrict a Data Fiduciary from transferring personal data for processing to countries or territories outside India that it specifies. Transfers elsewhere are not generally barred by this section.

  1. AIt may restrict transfer to such countries or territories outside India as it notifiesCorrect
  2. BIt must approve every individual transfer before the data leaves India
  3. CIt prohibits transfer to all countries unless a country is notified as permitted
  4. DIt may restrict transfer only for sensitive personal data and not for other personal data

Explanation

Section 16(1) lets the Central Government, by notification, restrict transfer to notified countries or territories. It is a notified-restriction model, not a general prohibition or prior approval of each transfer. The section does not limit itself to sensitive data.

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