Entities Could Face Penalty Of ?250 Crore Under Updated Personal Data Protection Bill

The Digital Personal Data Protection Bill 2023 was introduced in the Parliament on Thursday, laying down new obligations for entities in terms of how they process data of individuals.

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What does the bill entail?

According to the bill, the Data Protection Board of India would be set up soon and provide protection to the government, the board, and its members "on action taken in good faith," PTI reported. The bill would also allow the central government to block access to content in the interest of general public.

Entities that misuse or fail to protect the digital data of users may face penalty of up to ?250 crore, the bill states. Penalty norms in the updated bill have been relaxed compared to those proposed in the draft that was shared with the public 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.

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The bill states that a minimum of ?50 crore and a maximum of ?250 crore may be imposed on entities that violate the rules.

"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.

Even though the bill allows the central government to block access to any piece of content, Minister of State for Electronics and IT Rajeev Chandrasekhar said that the bill is intended to protect the rights of citizens, allow innovation, and expand the government's lawful access in the case of emergencies.

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"This is certainly a legislation that will create deep lasting behavioural 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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