The Personal Data Protection (PDP) Bill is likely to allow the cross-border flow of data to all countries except a few which will be specified by the Government. Under the earlier plan, cross-border data transfer was to be allowed only with a limited number of countries determined by the Government.
The revised Bill, seen by businessline, states that a data fiduciary may- unless restricted by the Central Government by notification upon the assessment of such factors as it may consider necessary- transfer personal data for processing to any country or territory outside India in accordance with such terms and conditions as the Central Government may notify.
The earlier draft had allowed for cross-border flow of data only with countries notified by the Centre. “The Central Government may, after an assessment of such factors as it may consider necessary, notify such countries or territories outside India to which a Data Fiduciary may transfer personal data,” the earlier draft said.
The revised provisions will come as a relief to both Indian and multinational companies. Indian IT services companies, for example, had pushed for relaxation in cross-border data rules.