Union Cabinet approves Personal Data Protection Bill in India
The Government on Wednesday approved the Personal Data Protection Bill that will spell out a framework for the handling of personal data including its processing by public and private entities.
The decision was taken at a Cabinet meeting headed by Prime Minister Narendra Modi.
Information and Broadcasting Minister Prakash Javadekar said the Bill will be introduced in Parliament during the current Winter Session.
The Bill is likely to contain broad guidelines on the collection, storage and processing of personal data, consent of individuals, penalties and compensation, code of conduct, and an enforcement model.
Last week, IT minister Ravi Shankar Prasad said the Government will soon introduce a robust and balanced Personal Data Protection Bill in Parliament, adding that India will never compromise on data sovereignty.
Companies may face a penalty of up to Rs 15 crore, or 4 percent of global turnover for major violations under the proposed Personal Data Protection law, which was approved by the Cabinet on Wednesday, according to official sources.
"In case of major violations, Personal Data Protection Bill proposes a penalty of up to Rs 15 crore, or 4 percent of global turnover (whichever is higher). For minor violation, a penalty of Rs 5 crore, or 2 percent of global turnover is proposed," a source said.
As per the Bill, critical data has to be mandatorily stored in India, while sensitive data can be processed outside with explicit consent of data owner.
"Data privacy law exempts processing of data without consent in case of issues around sovereignty, national security, court order, etc.," the source said.
Earlier this week, Industry body IAMAI said more clarity was needed on the classification of data and consent requirements in the draft Personal Data Protection Bill and argued that businesses need to fully comprehend adjustments they would have to make to comply with the norms.
(Edited by Suman Singh)