Entities that misuse or fail to protect the digital data of users may now face a penalty of up to Rs. 250 crore. This penalty is outlined in the Digital Personal Data Protection Bill 2023, which sets forth the obligations of entities that handle and process data, as well as the rights of individuals.
The bill, introduced in Parliament on Thursday, proposes the creation of the Data Protection Board of India. It also provides protection to the Centre, the board, and its members for any actions taken in good faith.
The bill’s penalty norms have been relaxed compared to the proposal in the draft DPDP circulated for public consultation in November 2022.
The bill states, “If the board determines, at the conclusion of an inquiry, that a person has breached the provisions of this Act or the rules made thereunder in a significant manner, it may impose a monetary penalty specified in the schedule after giving the person an opportunity to be heard.” The schedule allows for a maximum penalty of Rs. 250 crore and a minimum penalty of Rs. 50 crore for entities violating the norms.
The bill further provides legal immunity to the central government, the board, its chairperson, and any member, officer, or employee for any actions done or intended to be done in good faith under the provisions of the Act or the rules made thereunder.
Additionally, the bill empowers the Centre to block access to content in the interest of the general public, with a written reference from the board.
Rajeev Chandrasekhar, the Minister of State for Electronics and IT, stated that once passed by Parliament, the bill will protect the rights of all citizens, foster the expansion of the innovation economy, and provide lawful and legitimate access to personal data in matters of national security and emergencies such as pandemics and earthquakes. Chandrasekhar also emphasized that the bill will curb the misuse and exploitation of personal data by online platforms and impose significant consequences for such actions.
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