{"id":1875,"date":"2024-05-25T05:45:38","date_gmt":"2024-05-25T05:45:38","guid":{"rendered":"https:\/\/lawsikho.com\/blog\/?p=1875"},"modified":"2024-05-25T05:45:39","modified_gmt":"2024-05-25T05:45:39","slug":"how-to-handle-cross-border-transactions-under-the-digital-personal-data-protection-act-dpdpa","status":"publish","type":"post","link":"https:\/\/lawsikho-frontend-development.lawsikho.dev\/blog\/how-to-handle-cross-border-transactions-under-the-digital-personal-data-protection-act-dpdpa\/","title":{"rendered":"How to handle cross-border transactions under the Digital Personal Data Protection Act (DPDPA)"},"content":{"rendered":"\n

Ever wondered why your online shopping preferences seem to influence ads from companies halfway across the globe?<\/p>\n\n\n\n

Or how your Instagram stories, posts, and comments magically show up for your friends and family, no matter where they are?<\/p>\n\n\n\n

This fascinating phenomenon is the result of personal data travelling across borders in our interconnected world.<\/p>\n\n\n\n

Think about the convenience of cloud storage, where you can access your documents and photos from any device, anywhere in the world. <\/p>\n\n\n\n

Or <\/p>\n\n\n\n

Those eerily accurate streaming service recommendations\u2014they know your next favourite show before you do, all by analyzing the viewing habits of millions of users globally.<\/p>\n\n\n\n

Every time you make an online purchase, book a flight, or use a GPS service, your data is sent across borders to facilitate these transactions and services. <\/p>\n\n\n\n

Did you know that in 2022 alone, over 97 zettabytes<\/a> of data were created, captured, copied, and consumed worldwide? <\/p>\n\n\n\n

Additionally, the global data sphere is expected to grow to 175 zettabytes by 2025<\/a>!<\/p>\n\n\n\n

This massive exchange of information not only makes our lives easier but also fuels innovation, allowing companies to offer super personalized and efficient services. <\/p>\n\n\n\n

But wait\u2014how do we know that all this personal data flying around is safe and secure?<\/strong><\/p>\n\n\n\n

That\u2019s where data protection laws come in to save the day.<\/p>\n\n\n\n

And this is where your role steps in as a privacy manager. If your Indian company is engaged in the exchange of data across borders, you need to make sure it happens hassle-free and doesn’t call for any scrutiny or violations of the DPDPA\u2014the Indian law that acts as a guardian for transfers beyond Indian borders.<\/p>\n\n\n\n

So let\u2019s explore the intricacies of managing international data transfers and drafting Data Sharing Agreements (DSAs) to ensure compliance with the DPDPA. <\/p>\n\n\n\n

What are Cross-border Data Transfers under DPDPA <\/strong><\/p>\n\n\n\n

DPDPA is designed to ensure that personal data remains protected, even when it crosses borders.<\/p>\n\n\n\n

To transfer data internationally, businesses must comply with two conditions. <\/p>\n\n\n\n

Firstly, the DPDPA takes a negative list approach. As per Section 16 of the Act<\/strong>, transfers of personal data to countries and territories outside of India are generally permitted, except to countries and territories specifically notified in a \u201cnegative list\u201d issued by the central government. <\/p>\n\n\n\n

You also need a lawful basis to transfer personal data outside. Businesses must generally ensure that they are undertaking the transfer for a lawful purpose, as specified in Section 4 of the Act, and on the basis of valid grounds for processing \u2013 that is, either consent or certain \u201clegitimate uses\u201d. <\/p>\n\n\n\n

Importance of Data Sharing Agreements under DPDPA <\/strong><\/p>\n\n\n\n

Under DPDPA, if you want to share Personal Data, as a data fiduciary, you need to enter into an Agreement with entities that you wish to engage, appoint, use, or otherwise involve as a Data Processor to process personal data. <\/p>\n\n\n\n

This is where DSAs become Important. <\/strong><\/p>\n\n\n\n

DSAs are typically used when businesses need to share data with each other in order to collaborate on projects, provide services to customers, or improve their products and services. <\/p>\n\n\n\n

Here are some situations under which companies would need to enter into DSAs under the DPDPA: <\/strong><\/p>\n\n\n\n