Q5 - What is the government’s role in regulating cross-border transfers?

Answer

• The default position is that cross-border transfers are allowed.
• The government may notify “restricted jurisdictions” where transfers are prohibited or limited.
• This model avoids blanket localization but still protects sovereignty and national security.

Example

If the government notifies that data cannot be sent to “Country A” due to hostile activities, even a social media company with servers there must immediately stop processing Indian data in that location.