Module: | Priority Sector, Consumer Protection & Digital Lending
Q124: When a Credit Information Company (CIC) shares credit information of an individual with a third-party entity based on consent, where must that information be processed and stored?
✅ Correct Answer: A
The correct answer is A. A strict condition for sharing sensitive financial information is that the credit data received by the third-party entity shall be processed and stored exclusively in India and not transferred outside India.
This data localization mandate protects Indian consumers from foreign data breaches, ensures compliance with national privacy standards, and guarantees the RBI retains unhindered jurisdictional oversight over the information.
This data localization mandate protects Indian consumers from foreign data breaches, ensures compliance with national privacy standards, and guarantees the RBI retains unhindered jurisdictional oversight over the information.