What types of contracts does AMLEGALS handle?

AMLEGALS provides comprehensive contract advisory across 43+ contract types including Technology contracts (SaaS, AI/ML, Cloud Services), Data Privacy agreements (DPAs, DPDPA compliance), Commercial contracts (MSAs, Supply, Distribution), IP & Licensing, Employment agreements, and International Trade contracts.

What is the TCL Framework for contracts?

The TCL Framework is AMLEGALS proprietary approach that examines every contract through three lenses: Technical (understanding the operational realities), Commercial (aligning business objectives), and Legal (ensuring compliance and risk mitigation). This integrated approach ensures contracts that work in practice, not just on paper.

Does AMLEGALS handle DPDPA-compliant contracts?

Yes, AMLEGALS specializes in DPDPA-compliant contracts including Data Processing Agreements, Cross-Border Transfer Mechanisms, Data Sharing Agreements, and Consent Management frameworks. Our Vibe Data Privacy™ framework ensures comprehensive compliance with the Digital Personal Data Protection Act, 2023.

Can AMLEGALS help with AI and technology contracts?

Yes, AMLEGALS has dedicated expertise in AI/ML Contracts, AI Governance agreements, AI Training Data Licensing, SaaS Agreements, Cloud Services agreements, and System Integration contracts. We address emerging issues like algorithmic accountability, model ownership, and AI liability allocation.

What does RBI data localization require for payments?

RBI's April 2018 circular requires payment system data to be stored only in India within 24 hours of transaction processing. This includes full end-to-end transaction details, card data, and related processing data. The requirement applies to payment system operators and their providers. Key aspects: (1) Data must be stored exclusively in India—not just mirrored with copies abroad; (2) Processing can occur outside if necessary but data must return to India; (3) Regular compliance audits are expected; (4) Penalties for non-compliance can include license restrictions. Global payment networks had to restructure to comply. Contracts with payment processors must address these requirements explicitly with compliance obligations and audit rights.

How do fintech partnerships allocate data responsibility?

Proper allocation requires: (1) Identifying who is data fiduciary under DPDPA—typically the entity with customer relationship (bank/NBFC), not the technology provider; (2) Defining technology provider as data processor with appropriate processing agreement; (3) Limiting data access to what's necessary for service delivery; (4) Implementing RBI outsourcing requirements—audit rights, subcontracting restrictions, exit provisions; (5) Addressing Digital Lending Guidelines requirements for third-party involvement; (6) Allocating breach notification responsibilities; (7) Defining data handling at relationship termination. The bank/NBFC cannot outsource regulatory responsibility—they remain accountable even if fintech partner processes data. Contracts must reflect this reality.

What is the Account Aggregator framework?

Account Aggregator (AA) is RBI's consent-based data sharing framework. Three participant types exist: (1) Financial Information Providers (FIPs)—entities holding financial data (banks, insurers, AMCs); (2) Financial Information Users (FIUs)—entities using data for services (lenders, wealth advisors); (3) Account Aggregators—consent managers facilitating data flow. AA enables customers to share financial data across institutions through consent architecture. Participation requires: FIP/FIU integration agreements, technical implementation to AA standards, consent flow implementation, and data security requirements. Contracts between FIPs, AAs, and FIUs must address data handling, consent validity verification, liability allocation, and compliance obligations. Operating data sharing that replicates AA functions without licensing is problematic.

How do banking secrecy and DPDPA interact?

Banking secrecy (rooted in common law duty of confidence in banker-customer relationship) and DPDPA (statutory data protection) operate together: (1) Both create confidentiality obligations—banking secrecy focuses on customer relationship, DPDPA on data processing generally; (2) Exceptions differ—banking secrecy allows disclosure required by law, public interest, and customer consent; DPDPA has its own consent and legitimate purpose frameworks; (3) DPDPA adds rights banking secrecy doesn't—access, correction, erasure rights; (4) Banking secrecy may be broader in some respects—covering information banks infer, not just data provided; (5) Both require customer consent for third-party sharing beyond authorized purposes. Contracts should address both frameworks—privacy and confidentiality obligations, consent requirements, and exception circumstances.

Financial Services Data Privacy Contracts | Banking Data Protection

Overview

Financial services data privacy operates at the intersection of multiple regulatory frameworks. DPDPA provides the general data protection layer. RBI circulars impose data localization, security, and governance requirements. Banking secrecy obligations rooted in common law and statute create confidentiality duties. Account Aggregator framework creates regulated data sharing infrastructure. Each layer interacts, sometimes in tension.

The financial services sector has experienced regulatory acceleration. RBI's data localization requirements for payment data, digital lending guidelines imposing consent and disclosure obligations, Account Aggregator framework enabling consent-based data portability—each represents significant evolution. Contracts must reflect this current state while building flexibility for continued regulatory development.

Fintech partnerships create particular complexity. Traditional financial institutions partnering with technology providers must allocate data responsibilities clearly. Who is the fiduciary? Who controls processing? What happens when partnerships end? These questions don't answer themselves—contracts must address them explicitly.

Key Considerations

1

RBI Data Localization

Payment system data storage requirements, what must be stored in India, and compliance mechanisms for global operations.

2

Account Aggregator Integration

Contracts enabling participation in AA framework—FIP agreements, FIU agreements, and consent architecture implementation.

3

Banking Secrecy Obligations

Contractual treatment of confidentiality duties arising from banker-customer relationship alongside DPDPA requirements.

4

Digital Lending Compliance

Data handling requirements under RBI digital lending guidelines including disclosure, consent, and grievance handling.

5

Fintech Partnership Structures

Data sharing agreements between banks/NBFCs and technology partners with clear fiduciary responsibility allocation.

6

Outsourcing Data Governance

RBI outsourcing guidelines applicable to data processing outsourcing, including audit rights and subcontracting restrictions.

Applying the TCL Framework

Technical

Data localization infrastructure for payment system data
API security standards for Account Aggregator connections
Encryption requirements for financial data at rest and in transit
Access control and authentication for banking systems
Audit logging and monitoring for regulatory compliance

Commercial

Data processing fees reflecting regulatory compliance costs
Liability allocation for financial data breaches
Insurance requirements for fintech data processors
SLA structures appropriate to financial services operations
Exit costs including data migration and system unwinding

Legal

DPDPA compliance integrated with RBI requirements
Banking secrecy obligations in data sharing agreements
Account Aggregator framework compliance
Digital lending guidelines adherence
RBI outsourcing circular compliance for data services

“

"Financial services have always handled data with care—banking secrecy predates modern data protection by centuries. What's changed is the regulatory density and the technology complexity. The principle remains: your customer's financial information is their private business, shared with you in trust."

AM

Anandaday Misshra

Founder & Managing Partner

Common Pitfalls

Localization Gaps

Assuming that storing a copy in India satisfies localization when RBI requires exclusive storage for certain data categories.

Fintech Responsibility Ambiguity

Unclear allocation between banks and fintech partners regarding who is responsible for DPDPA compliance as data fiduciary.

AA Framework Confusion

Participating in data sharing that resembles Account Aggregator functions without proper licensing, creating regulatory exposure.

Outsourcing Non-compliance

Engaging data processors without satisfying RBI outsourcing requirements—prior approval, audit rights, subcontracting restrictions.

Digital Lending Gaps

Not implementing required disclosures, consent mechanisms, or grievance handling that RBI digital lending guidelines mandate.

Financial Services Data Regulatory Framework

DPDPA 2023 applies to financial services alongside sector-specific frameworks. RBI data localization circular (2018) requires payment system data storage exclusively in India—not just mirrors, but exclusive storage. RBI Digital Lending Guidelines (2022) impose consent, disclosure, and data handling requirements on digital lenders and their partners. Account Aggregator framework creates regulated consent-based data sharing with specific participant types (AA, FIP, FIU). RBI Outsourcing Circular requires prior approval for critical IT outsourcing, audit rights, and restrictions on subcontracting. IT Act provisions on banking data continue to apply. Banking secrecy rooted in common law (Tourism Finance Corporation case) and statute creates confidentiality obligations. SEBI requirements apply to securities-related data. IRDAI requirements govern insurance data. Multi-regulator landscape requires understanding which requirements apply to specific activities.

Practical Guidance

Map your data flows precisely—understanding what data goes where is essential for localization compliance and regulatory analysis.
Integrate DPDPA and RBI requirements—don't treat them as separate compliance exercises; design systems that satisfy both.
Clarify fintech partnership roles explicitly—who is data fiduciary, what processing is authorized, how consent flows work.
Build regulatory change mechanisms into long-term contracts—financial services regulation evolves rapidly.
Implement Account Aggregator participation correctly—operating outside licensed framework while replicating its functions creates exposure.
Maintain audit rights and exercise them—RBI expects regulated entities to actively monitor outsourced data processing.

Frequently Asked Questions

Related Contract Types

Cloud Services Agreements

Technology & Digital

Infrastructure and platform agreements addressing availability, security, and data residency

Data Processing Agreements

Data Privacy & Protection

DPDPA-compliant contracts defining processor obligations, sub-processing, and breach notification

Cross-Border Data Transfer Agreements