Centre raises penalty amount for violation of data policy in new draft bill
The Centre released the draft of a new comprehensive Digital Personal Data Protection Bill on Friday in which the government has raised the penalty amount to up to Rs.500 crore for violating the provisions proposed under the draft.
The revised Data Protection Bill envisages the imposition of stiff financial penalties if organizations fail to contain data breaches or intimate users and the government about such incidents, a draft version revealed.
The draft proposes to set up a Data Protection Board of India, which will carry on functions as per the provisions of the bill. As per the draft bill, the Act aims to lay down rules for the processing of digital personal data wherein the right of individuals to protect their personal data and the need to process personal data for lawful purposes are recognized.
According to the draft Bill, “If any organization, data fiduciary or processor, handling personal data of users fails to “take reasonable security safeguards to prevent personal data breach”, a penalty of up to Rs.250 crore may be levied.”
Further, if an organization fails to “notify the (Data Protection) Board and affected Data Principals (users) in the event of a personal data breach that is likely to result in significant harm to data principals, a penalty of up to Rs.150 crore shall be applicable,” it stated.
Union Minister for Railways, Communications, Electronics, and Information Technology Ashwini Vaishnaw Friday tweeted, “Seeking your views on draft Digital Personal Data Protection Bill, 2022,” and posted a link of the draft legislation.
Seeking your views on draft Digital Personal Data Protection Bill, 2022.
Link below: https://t.co/8KfrwBnoF0
— Ashwini Vaishnaw (@AshwiniVaishnaw) November 18, 2022
An explanatory note explains the need for the Act: “Digital India has caused digitization of the Indian economy and transformed the lives of Indian citizens in particular and governance in general. It has become clear over the last few years that while the internet and technology are a force for good and connectivity, it is also a place where user harm and misuse can exist if these rules and laws are not prescribed. That is why laws and rulemaking for the internet have to be around the basic foundational principles and expectations of our citizens of openness, safety & trust, and accountability.”
When the government issued the draft Personal Data Protection Bill in 2019, it proposed a penalty of Rs.15 crore or 4 percent of the global turnover of an entity.
[With Inputs from IANS]
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