Data Protection Bill Gets Cabinet Nod, To Be Tabled In Parliament’s Monsoon Session

The Union Cabinet reportedly cleared the The Digital Personal Data Protection (DPDP) Bill 2022 on Wednesday (July 5). The Bill is now likely to be tabled in the Parliament during the upcoming Monsoon Session.

The Bill, which was released in November 2022, has seen some minor changes after consultations with stakeholders, as per reports.

The government withdrew the Personal Data Protection Bill, 2021 last year after a joint parliamentary committee (JPC) proposed 81 amendments to it.

Following this, the government came out with the DPDP Bill. The Bill has proposed a slew of reforms to govern the burgeoning Indian digital ecosystem. It has proposed the concept of data fiduciary and mandated new changes, including the right of a user to give, manage, and withdraw consent for sharing information.

In the Bill, the government has defined ‘data fiduciary’ as any person who alone or in conjunction with other persons determines the purpose and means of processing of personal data.

“The purpose of this Act is to provide for the processing of digital personal data in a manner that recognises both the right of individuals to protect their personal data and the need to process personal data for lawful purposes,” the government said in a statement at the time of publishing the Bill.

As per the draft, the provisions of the Bill will be applicable to processing of digital personal data outside the territory of India as well, if such processing is in connection with any profiling of, or activity of offering goods or services to individuals within the territory of India.

As per earlier reports, the government will retain 18 years of age as the threshold to define minors under the proposed Bill.

Last year, Minister of State for Electronics and Technology Rajeev Chandrasekhar said that the Bill would end data misuse and fine violating companies.

The new data privacy law will also significantly increase the accountability of startup businesses when managing sensitive data. In case of non-compliance with the provisions of the Bill, a penalty of up to INR 500 Cr may be imposed.