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Digital Data Protection Bill, 2023: Insights and Steps for Businesses

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Digital Data Protection Bill

Last week, India took a significant step forward by successfully passing the updated Digital Personal Data Protection Bill (DPDP), 2023. The bill was drafted to protect people’s privacy in India. This legislation specifies who is accountable, the rules to be followed, what happens if the rules are breached, and how individuals may complain if they are dissatisfied. The idea is to offer people more control over their personal information when it is stored digitally.

For businesses, the new Digital Personal Data Protection Law allows them to transfer people’s data to foreign nations. However, the government can also request information and advise them on what to do based on advice from a data protection committee. However, some people are concerned. They believe that this will lead to increased government monitoring and checking on people.

What if someone does not obey the regulations? They may be fined. The government will select who belongs to this organization and how it operates.

Curious to know more? Let’s understand the new Digital Data Protection Law.

Key Takeaways of Digital Data Protection Bill, 2023

The Basics

The new law seeks to replace the previous data protection standards, which were primarily governed by a section of the 2000 Information Technology Act. This new Data Protection Bill acts as a barrier to personally identifiable information.

Individuals, businesses, and even the government are included in the statute as people and organizations that interact with data. They must all obey the regulations when collecting, storing, and working with data. The law also addresses the rights of the individuals whose data is being collected.

This law tries to preserve data while creating as little disruption as possible. It aims to make life simpler for both individuals and companies while also supporting India’s digital growth and innovation. That is what the government says.

Principles of the Bill

This Bill’s major principles are based on important rules.

  • Before their data may be utilized, users must first agree.
  • Data should only be utilized for its intended purpose.
  • Only necessary information should be gathered.
  • The data must be accurate.
  • The data should only be maintained for only as long as required.
  • It is critical to keep data secure.
  • Finally, entities will be held responsible for data breaches through adjudication and penalties.

This Bill also grants citizens’ rights.

  • They may see which of their data has been exploited.
  • They can correct or delete incorrect data.
  • They have the right to complain if they are dissatisfied with anything.
  • And if they are unable to handle their rights, they can choose someone to assist them.

Key Duties of Data Fiduciary (Summarized)

  • Data must be kept safe by the people and organizations that manage it.
  • If the data is compromised, the Data Protection Board for Breaches must be notified.
  • Any type of data that is no longer needed or is requested by the individuals to be deleted, must be erased.
  • A platform/system must be built for individuals’ grievances.
  • Those who are Significant Data Fiduciaries must perform additional responsibilities, such as appointing a data auditor and regularly doing assessments to ensure data protection.

This Bill also addresses scenarios in which the rules may not apply. For example, when data must be utilized for safety, research, or legal purposes. It also makes exceptions for new firms or where specific activities must be performed by the government or in court. There are laws in place if data is required for certain purposes, such as locating people who owe money.

Moving Personal Information Outside India

The DPDP Bill of 2023 allows transferring of personal information to other nations, except those that the government bans by notification.

Data Protection Board of India

Who are the defenders of your data? The central government will form the Data Protection Board of India. This team will be responsible for responsibilities such as

  • ensuring that everyone respects the regulations and issuing penalties, if necessary,
  • instructing data handlers on what to do in the event of a data breach, and
  • listening to complaints from those who have been impacted.

When the team checks everything, they will be fair and explain their decisions.

Penalties

Let’s talk about the consequences now.

The bill comes with a list of penalties for various offenses:

(i) For non-fulfillment of obligations for children’s data, the fine is up to INR 200 crore (that’s around USD 2,41,88,540).

(ii) For failure to implement data protection measures and if a breach happens, the fine is up to INR 250 crore (which translates to about USD 3,02,35,675).

So, remember, it pays to stay on the right side of data protection!

ZNetLive’s Recommendations for your Readiness Journey

The Digital Data Protection Bill 2023 is all set to shake up the business world, but there are ways businesses can adapt and thrive in this changing environment. Let’s find out:

Enhance Data Security

The Digital Data Protection Bill 2023 places a strong emphasis on data security and enforces strict penalties for any lapses. This underscores the need for businesses to embrace robust platforms to fortify data protection. However, ensuring data security is a complex task. Organizations must establish a proficient data security team or adopt effective cyberprotection tools like Acronis.

Additionally, you can use another comprehensive cybersecurity solution – Microsoft Defender that can safeguard your devices and data against evolving threats. With advanced threat detection and real-time protection, it offers peace of mind through its seamless integration and continuous updates. Microsoft offers it as a part of its premium business plans.

Both tools provide comprehensive security solutions, offering real-time threat protection, malware detection and removal, virus protection, and defense against ransomware and phishing attacks. Acronis is specialized for security purposes, while Microsoft Defender is embedded within the Business Premium package.

Check and Control Data Access

Robust data access control becomes even more necessary in light of the Digital Data Protection Bill 2023. Because the bill stresses user permission and accountability for data processing, companies must have the capacity to regulate and monitor who has access to what data. Role-based access controls, encryption, and audit trails, as well as solutions like Microsoft’s Azure Active Directory, enable enterprises to develop a strong data access control framework that complies with legal standards and protects data from possible breaches.

Secure Data Transmission

SSL certificates can help protect data during transmission by ensuring secure communication between your website and users.

Data Processing and Compliance Reporting

Businesses need to demonstrate compliance at all times. In this case, Acronis, a powerful data security solution, assists in streamlining your data processing processes, assuring smooth compliance with requirements, and, as a result, drastically lowers the risk of non-compliance. It’s a safety net that matches your data practices with the bill’s requirements while employing superior data protection technologies.

Train and Educate Employees

Because the bill focuses on data security and compliance, employees must understand their duties in preserving sensitive information. Cybersecurity training is part of a complete cyber protection plan that companies must adhere to.

Conclusion

The Digital Data Protection Bill 2023 brings in a new age of tough regulations to protect individuals and organizations alike in the fast-expanding digital environment, where data privacy and security are crucial.

However, businesses can confidently traverse the digital arena by proactively addressing data security. India, by passing the much-awaited Digital Data Protection Bill, has stepped up to guide businesses towards a safer, more secure, and more compliant digital future.

Featured Image Source: Pexels

Disclaimer: The information provided in this article is based on publicly available sources and is intended for general information purpose only. While we provide accurate and up-to-date information, readers are advised to research or consult with legal experts before making any decisions based on the information provided.

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About author
Priyanka Dadhich – a content writer, can usually be found reading books. She likes to write about technology, healthcare, travel and fashion. Priyanka loves coffee and listens to music in her free time. She spends her free time with her family.
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