Lok Sabha has approved the Digital Personal Data Protection Bill (DPDPB), 2023. The bill was put forward at the governing body by Ashwini Vaishnaw, Minister for Railways, Communications, Electronics & Information Technology, for discussion on August 3, 2023. Reportedly, members of the opposition voiced their opinions against the bill.
“DPDPB’s focus on capturing consumer rights to data protection as fundamental rights and introducing obligations for data fiduciaries indicates a step towards balancing data protection and fostering innovation. While we await details on the implementation, we are optimistic about the impact of this bill on businesses and data processing in India,” Parag Khurana, country manager, Barracuda Networks (India) Pvt Ltd, a software company, told FE TransformX.
From what it’s understood, the bill aims “to provide for the processing of digital personal data in a manner that recognises both the right of individuals to protect their personal data and the need to process such personal data for lawful purposes and for matters connected therewith or incidental thereto.” Insights from the bill mentioned that a fine of up to Rs 250 crore would be imposed on platforms upon their failure to ensure individuals’ digital data safekeeping, as it intends to protect Indian citizens’ privacy. “Digital transactions have transformed economic as well as social interactions. Use of personal data for provision of services and other purposes is a common aspect of such transactions. In this context, protection of personal data has become a pre-requisite for growth of digital economy,” the bill added.
According to Rajat Deshpande, co-founder and CEO, FinBox, a credit risk management platform, this bill brings along a regulatory regime for the data economy. “For the digitising financial sector and startups in the space, this bill should provide guidelines and ensure the compliance of data security and ethical practices. The new Data Protection Board should also give citizens confidence and clarity about sharing their data and availing services and products – be it from the government or the private sector,” Deshpande attached.
However, questions have been raised on the bill by Editors Guild of India (EGI), a journalistic non-profit organisation. Reportedly, the organisation emphasised on what the bill’s implications can mean for press freedom. EGI upheld that Clause 37(1)(b) would expand Union government’s current censorship capabilities. “We are deeply concerned about the lack of exemptions for journalists from certain obligations of the law, where the reporting on certain entities in public interest may conflict with their right to personal data protection. The Justice Srikrishna Committee report had noted that ‘If journalists were made to adhere to the grounds of processing personal data, it would be extremely onerous for them to access information’, and that ‘mandating grounds of processing like consent would mean that accounts that are unfavourable to the data principal would simply not get published’,” EGI’s official statement read.
“As the DPDPB has been passed in parliament today, it aims to serve as a reminder that just as user privacy is paramount in the digital age, network security stands as an equal responsibility for companies. Safeguarding not only personal information but also the infrastructure that holds it, ensures a landscape where trust, innovation, and progress can thrive,” Udit Mehrotra, MD and CEO, Spectra, a NaaS provider, concluded.