The Ministry of Electronics and Information Technology, (MeitY) on August 03, 2023, notified Digital Personal Data Protection Bill, 2023.
Highlights
- The Bill will apply to the processing of digital personal data within India where such data is collected online, or collected offline and is digitised. It will also apply to such processing outside India if it is for offering goods or services in India.
- Personal data may be processed only for a lawful purpose upon the consent of an individual. Consent may not be required for specified legitimate uses such as the voluntary sharing of data by the individual or processing by the State for permits, licenses, benefits, and services.
- Data fiduciaries will be obligated to maintain the accuracy of data, keep data secure, and delete data once its purpose has been met.
- The Bill grants certain rights to individuals including the right to obtain information, seek correction and erasure, and grievance redressal.
- The central government may exempt government agencies from the application of provisions of the Bill in the interest of specified grounds such as security of the state, public order, and prevention of offences.
- The central government will establish the Data Protection Board of India to adjudicate non-compliance with the provisions of the Bill.
Key Issues and Analysis
- Exemptions to data processing by the State on grounds such as national security may lead to data collection, processing, and retention beyond what is necessary. This may violate the fundamental right to privacy.
- The Bill does not regulate risks of harm arising from the processing of personal data.
- The Bill does not grant the right to data portability and the right to be forgotten to the data principal.
- The Bill allows the transfer of personal data outside India, except to countries notified by the central government. This mechanism may not ensure adequate evaluation of data protection standards in the countries where the transfer of personal data is allowed.
- The members of the Data Protection Board of India will be appointed for two years and will be eligible for re-appointment. The short-term scope for re-appointment may affect the independent functioning of the Board.
[BILL NO. 113 OF 2023]
