India Unveils Tough Digital Data Rules with New Penalties

January 6, 2025January 6, 2025

Indian Government Unveils Draft Digital Personal Data Protection Rules for Public Consultation

The Indian government has officially released a draft version of the Digital Personal Data Protection (DPDP) Rules, inviting public consultation. This important development aims to enhance the protection of personal data for all citizens, as emphasized by the Press Information Bureau (PIB). The DPDP rules are designed to empower individuals with rights related to their data, enabling them to make informed decisions about how their personal information is managed.

The draft regulations seek to operationalize the Digital Personal Data Protection Act, 2023, which was passed in August 2023. The primary focus is on ensuring that data fiduciaries provide transparent information regarding personal data processing and facilitate the process of obtaining informed consent from users. This move signifies a significant step towards giving citizens greater control over their personal information and the right to demand data erasure.

Key Provisions of the Digital Personal Data Protection Rules

The DPDP Rules introduce several critical provisions to safeguard citizens’ personal data. Here are some notable highlights:

Clear Communication: Data fiduciaries must offer accessible information on how personal data is processed, ensuring users understand their rights.
Right to Erasure: Citizens can request the deletion of their personal data, with a notification period of 48 hours before the erasure process begins.
Data Breach Protocols: In the event of a data breach, organizations are required to report within 72 hours, detailing the incident and mitigation actions taken.
Designated Data Protection Officers: Companies must display contact details for a Data Protection Officer (DPO) responsible for handling inquiries regarding personal data processing.
Child Data Protection: Companies must obtain verifiable consent from parents or guardians before processing the personal data of children under 18.
Annual Audits: Significant data fiduciaries must conduct a Data Protection Impact Assessment (DPIA) and an annual audit, reporting findings to the Data Protection Board (DPB).
Cross-Border Data Transfers: Organizations must comply with federal regulations regarding cross-border data transfers, as outlined by a specialized committee.

Potential Penalties for Non-Compliance

Organizations that fail to protect individuals’ digital data or neglect to report security breaches to the DPB may face substantial penalties. Fines can reach up to ₹250 crore (approximately $30 million), underscoring the serious implications of non-compliance.

Public Feedback and Consultation Period

The Ministry of Electronics and Information Technology (MeitY) is currently seeking public feedback on the draft regulations until February 18, 2025. Importantly, submissions will remain confidential, encouraging open dialogue and input from concerned citizens.

Background of the DPDP Act

The DPDP Act was created in response to a 2017 ruling by India’s Supreme Court, which established the right to privacy as a fundamental right under the Constitution of India. This legislative effort aims to address the growing concerns surrounding data privacy and protection in the digital age.

Conclusion

As the Indian government moves forward with the DPDP Rules, citizens are encouraged to engage in the consultation process, ensuring their voices are heard in shaping the future of data protection in India. This initiative not only enhances individual rights but also establishes a framework for organizations to manage personal data responsibly.

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For further reading, you can check out the Digital Personal Data Protection Act, 2023 and the Press Information Bureau’s official statement.

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