Digital Personal Data Protection Bill Is Now Officially an Act, Receives President’s Assent

The Digital Personal Data Protection bill, passed by Parliament this week, has received President’s assent, Union Minister Ashwini Vaishnaw said on Saturday. 

Digital Personal Data Protection (DPDP) law aims to protect the privacy of Indian citizens while proposing a penalty of up to Rs. 250 crore on entities for misusing or failing to protect digital data of individuals.

Companies handling user data will be required to safeguard the individual’s information, and instances of personal data breach have to be reported to the Data Protection Board (DPB) and the user.

“DPDP Bill becomes an Act. Received Hon’ble President’s assent,” Vaishnaw said in similar posts on X (formerly Twitter), and homegrown app Koo.

On August 9, the Rajya Sabha approved the DPDP bill that introduces several compliance requirements for the collection and processing of personal data, has provisions to curb misuse of individuals’ data by online platforms, and entails up to Rs. 250 crore penalty for any data breach.

Data of children can be processed after consent from guardians, as per the DPDP law. The Lok Sabha had approved the bill on August 7. The government expects to implement the Act within 10 months, IT Minister Vaishnaw had said earlier this week.

The bill lays down the manner in which companies should process users’ data, and gives the government power to seek information from firms and issue directions to block content on the advice of a data protection board appointed by the Union government. It allows users the right to correct their personal data.

The bill applies to the processing of digital personal data in India, where the personal data is either collected in digital form or in a non-digitised format and subsequently digitised.

The bill defines ‘personal data’ broadly to include any data about an individual who is identifiable by or in relation to such data. ‘digital personal data’ is defined to mean personal data in digital form.

DPDP gives the government powers to exempt state agencies from the law.

“The Digital Personal Data Protection Bill, 2023 a bill 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,” the DPDP bill said.

It moots creation of Data Protection Board of India to handle grievances of individuals around personal data privacy if data fiduciaries or firms using personal data fail to address individuals’ complaints.


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Digital Personal Data Protection Law Expected to Be Implemented Within 10 Months: IT Minister

The government is expecting to implement the Digital Personal Data Protection law within 10 months, Union IT Minister Ashwini Vaishnaw said on Wednesday. 

The Rajya Sabha on Wednesday passed the Digital Personal Data Protection Bill 2023 with a voice vote amid a walkout by opposition members over the Manipur issue. The Bill, which comes after six years of the Supreme Court declaring ‘Right to Privacy’ as a fundamental right, has provisions to curb the misuse of individuals’ data by online platforms.

“We have started work on implementation. This kind of legislation will require a 6-10 month kind of frame. We will take every step with proper checks and balances. It is a guesstimate. We might do it faster than that,” Vaishnaw said.

Elaborating on the principles, he said the data collected by the citizens should be used as per the law, only for the purpose for which it has been collected and the quantum of data should be limited to the requirement.

Vaishnaw said citizens will have the right to correct their data and it should be stored with entities till the time it is required and protected by putting in place reasonable safeguards.

“The provisions of the bill will apply to data of Indian citizens stored overseas as well. Any person in India, even foreign nationals will get protection under the bill,” he said.

Addressing concerns around changes in the Right to Information Act, he said the Puttaswamy judgement has made the Right to Privacy a fundamental right. Therefore, any personal data can be published only through a legally approved process and in no other form personal information can be shared in any public forum.

During the discussion, YSR Congress Party member V Vijayasai Reddy raised the issue of telephone tapping through software.

Vaishnaw said that phone tapping is not an issue under the DPDP 2023 and it will be covered under the Indian Telecommunication Bill and Digital India Act.

The minister said an independent Data Protection Board (DPB) will be created, which is “digital by design”, and will provide similar access to justice to people across the country in the same way as privileged people in cities like Delhi and Mumbai.

Vaishnaw said that the subject of data privacy comes under the Centre and the bill will evolve over a period of time.

When asked if there will be a state-level DPB, the minister said that bodies like DPB are created at the Union level to check misuse of jurisdiction by rule violators.

AIADMK M Thambidurai had raised the issue of the medical data of politicians getting reported in the media and it should be protected as personal data.

Vaishnaw said that the DPDP 2023 will not overwrite sectoral rules and rules for media will be as per existing related laws.

“However, the healthcare department should not leak someone’s personal data without proper consent,” he said.

He also slammed the opposition for not participating in the discussion over the bill.

“Opposition has no interest in the rights of 140 crore people. They should have also participated and joined everyone in passing the bill,” Vaishnaw said. 


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Personal Data Protection Bill: Entities May Face Penalty of Up to Rs. 250 Crore on Failing to Protect Data

Entities misusing or failing to protect digital data users may face penalty of up to Rs. 250 crore, according to the Digital Personal Data Protection Bill 2023 which lays down obligations of entities handling and processing data as well as rights of individuals. 

The bill which was introduced in Parliament on Thursday moots creation of Data Protection Board of India and provides protection to the Centre, the board and its members, on “action taken in good faith”.

The bill has relaxed penalty norms compared to the proposal made in the draft DPDP that was circulated for public consultation in November 2022.

“If the board determines on conclusion of an inquiry that breach of the provisions of this Act or the rules made thereunder by a person is significant, it may, after giving person an opportunity of being heard, impose such monetary penalty specified in the schedule,” the bill said.

Under the schedule, maximum of Rs. 250 crore and minimum Rs. 50 crore can be imposed on entity violating the norms.

“No suit, prosecution or other legal proceedings shall lie against the central government, the board, its chairperson and any member, officer or employee thereof for anything which is done or intended to be done in good faith under the provisions of this Act or the rules made thereunder,” the bill said.

Provisions under the bill enable the Centre to block access to content in the interest of general public on getting reference in writing from the board.

Minister of State for electronics and IT Rajeev Chandrasekhar said that the bill after it is passed by Parliament, will protect rights of all citizens, allow innovation economy to expand and permit the government’s lawful and legitimate access in national security and emergencies like pandemics and earthquakes etc.

“It will take a lot of the concerns and lot of misuse and exploitation that is done by many of these (online) platforms. Puts a break on that once and for all. This is certainly a legislation that will create deep lasting behaviourial change and create high punitive consequences for any or all platforms that misuse or exploit personal data of any Indian citizen,” Chandrasekhar said.


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Digital Personal Data Protection Bill 2023 Introduced in Lok Sabha

The government on Thursday tabled the Digital Personal Data Protection Bill in Lok Sabha amid demands by opposition members that it be referred to a parliamentary panel for scrutiny. While moving the bill, IT Minister Ashwini Vaishnaw rejected suggestions that it was a money bill. He said it was a “normal bill”.

Various opposition members opposed the bill at the introduction stage, questioning the measure.

Congress leader in Lok Sabha Adhir Ranjan Chowdhury and his party colleagues Manish Tewari and Shashi Tharoor said the issue of Right to Privacy was involved and the government should not rush with the bill. 

The Centre had previously introduced the Personal Data Protection Bill 2019 in Parliament. The Bill was sent for consideration to the Joint Committee of Parliament. The Joint Committee, after consultations, submitted a report to the Speaker.

In view of the feedback by stakeholders and various agencies, the Bill was withdrawn in August 2022. On November 18, 2022, the government published a new draft Bill, titled the Digital Personal Data Protection Bill 2022, and initiated a public consultation on this draft.

A comprehensive and detailed consultation was held on this subject. 21,666 comments were received from the public and a series of consultations were held with 46 sector organisations, associations and industry bodies.

Comments were also received from 38 ministries/departments of the Government of India. The reintroduced draft Digital Personal Data Protection Bill 2022 proposed six types of penalties on non-companies to companies.

To prevent a personal data breach, a penalty of up to Rs. 250 crore is being proposed in the draft bill which was put out for public comments. Besides, failure to notify the Board and affected Data Principals in the event of a personal data breach and non-fulfilment of additional obligations in relation to Children may attract a penalty of up to Rs. 200 crore.

Non-fulfilment of additional obligations of Significant Data Fiduciary under sections 11 and 16 of the Act may attract Rs. 150 crore and Rs. 10 crore fines, respectively.


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New Data Privacy Bill Will Be Ready Soon, Nirmala Sitharaman Reportedly Confirms

India will get a new data privacy bill “soon”, Finance Minister Nirmala Sitharaman confirmed on Wednesday. The Information Technology minister Ashwini Vaishnaw is working on it, said the minister, adding that the new Bill would address every such concern most of the people had on the privacy Bill. Last month, the government withdrew the controversial Personal Data Protection Bill announcing it was working on a new comprehensive law. The 2019 Bill proposed stringent regulations on cross-border data flows and suggested giving the government powers to seek user data from companies.

As per a report by PTI, Sitharaman made remarks about the introduction of new data privacy bill today while speaking at the India Ideas Summit organised by the US-India Business Council.

“We will soon have a new Data Privacy Bill, which will be a product of consultations and will address every such concern most of us had on the privacy Bill,” she reportedly said.

The Personal Data Protection Bill 2019 was withdrawn by the government in August after parliamentary panel’s review of the 2019 bill suggested many amendments. The Union Minister of Electronics and Information Technology Ashwini Vaishnaw had earlier said that the joint committee have recommended 81 amendments in a Bill of 99 sections. There are said to be over 12 more recommendations and a new bill would be presented that would fit into the comprehensive legal framework.

The Bill had raised concerns among big technology companies such as Facebook and Google that it could increase their compliance burden and data storage requirements.


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