In a significant move to safeguard citizens’ privacy rights, the Lok Sabha has successfully passed the long-awaited Digital Personal Data Protection (DPDP) Bill on Monday, August 7, 2023. The bill was presented by the Minister for Electronics and Information Technology, Ashwini Vaishnaw, and comes after extensive consultations with various stakeholders, garnering feedback on the draft legislation released in November 2022.
The DPDP Bill, 2023, was approved by the Union Cabinet in July and subsequently received a green light from the Standing Committee for Information Technology and Communication.
This accomplishment follows the withdrawal of a previous version of the bill in August 2022, which had undergone more than 80 amendments suggested by a parliamentary panel.
The current version of the DPDP Bill has been streamlined to focus solely on personal and digital data concerning Indian citizens. Among its notable features, the bill introduces the concept of data fiduciary and emphasizes the right of users to provide, manage, and withdraw consent for data sharing. Startups, in particular, will face increased accountability when handling sensitive data, as non-compliance could lead to penalties of up to INR 500 Cr.
The bill also addresses cross-border data transfer, allowing data to be stored and transferred to “certain notified countries and territories.” However, it includes specific exemptions for cross-border data transfer related to arbitrations, government interests, and research purposes. Additionally, the Data Protection Board of India will be established by the central government to handle cases of non-compliance with the DPDP Bill provisions.
While industry experts have hailed the bill as a step towards empowering citizens with privacy rights and enhancing accountability in data management practices, the opposition has raised concerns about certain provisions. They have called for the bill to be sent to a parliamentary panel for further scrutiny.
The DPDP Bill’s passage in the Lok Sabha marks a significant milestone in India’s efforts to protect personal data in the digital era. The bill will now proceed to the Rajya Sabha for further deliberations before it can be enacted into law upon receiving the President’s assent.
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