Centre Notifies Data Protection Rules, Paving the Way for India’s First Privacy Law

Context:

  • The Ministry of Electronics and Information Technology (MeitY) has notified the Data Protection Rules, operationalising the Digital Personal Data Protection Act, 2023 (DPDP Act).

  • This marks a decisive step towards India’s first comprehensive privacy law, nearly two years after the Act received Presidential assent in August 2023.

Key Highlights:

Legal & Governance Framework

  • Notification enables phased implementation of the DPDP Act.

  • Core safeguards like informed consent and mandatory data breach notification to be enforced within 12–18 months.

  • Amendments to the Right to Information (RTI) Act notified alongside the rules.

Institutional Mechanism

  • Data Protection Board of India (DPB) is now operational.

    • Head office in New Delhi

    • Comprises one Chairperson and four members

  • DPB will act as the primary enforcement and adjudicatory authority.

Data Localization & Compliance Requirements

  • Data localization norms mandate that certain categories of personal data be processed and stored within India.

  • Significant Data Fiduciaries (SDFs) to be notified based on:

    • Volume of data processed

    • Sensitivity of personal data

    • Potential impact on national interest and sovereignty

Children’s Data Protection

  • Mandatory verifiable parental consent before processing children’s personal data.

  • Higher compliance burden on digital platforms catering to minors.

Data Breach Obligations

  • In the event of a breach, data fiduciaries must:

    • Promptly inform affected individuals

    • Disclose nature, extent, and potential consequences of the breach

Concerns & Criticism

  • Act criticised for:

    • Granting broad exemptions to the government

    • Potential dilution of RTI Act transparency provisions

Relevant Prelims Points:

  • Issue: Absence of a comprehensive statutory framework for data privacy in India.

  • Causes:

    • Rapid digitisation

    • Rising data breaches and misuse of personal data

  • Government Initiative:

    • Digital Personal Data Protection Act, 2023

    • Notification of Data Protection Rules

  • Key Provisions:

    • Consent-based data processing

    • Data localization

    • Breach notification norms

  • Benefits:

    • Enhanced privacy protection

    • Greater accountability of tech companies

  • Challenges:

    • Government exemptions

    • Compliance costs for businesses

  • Impact:

    • Strengthens India’s digital governance architecture

Relevant Mains Points:

  • Key Definitions & Concepts:

    • Data Fiduciary: Entity determining purpose and means of data processing

    • Data Principal: Individual whose data is processed

    • Data Localization: Storage of data within national borders

  • Governance & Polity Dimensions:

    • Balances privacy as a fundamental right (Puttaswamy judgment) with state interests

    • Raises concerns about executive discretion and transparency

  • Science & Technology Aspect:

    • Regulates Big Tech and digital platforms

    • Impacts cross-border data flows and innovation

  • Way Forward:

    • Ensure independent functioning of DPB

    • Narrow government exemptions through safeguards

    • Harmonise RTI transparency with data protection goals

    • Build institutional capacity for effective enforcement

UPSC Relevance (GS-wise):

  • GS 2: Polity, Governance, Rights-based legislation

  • GS 3: Science & Technology, Digital Economy

  • Prelims: DPDP Act, Data Fiduciary, Data Localization, RTI

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