As India’s digital economy grows, data privacy becomes a critical concern. To address this, the Digital Personal Data Protection Bill, 2024 (DPDPB) introduces a comprehensive framework for how personal data is collected, stored, processed, and transferred. This bill is set to reshape how businesses operate by enforcing stricter privacy norms and protecting individuals' rights.
- Personal Data Definition: The bill covers all data that can identify an individual, including sensitive data such as health and financial information.
- Consent-Based Collection: Businesses must obtain explicit consent from individuals before collecting their data, ensuring transparency in data use.
- Individual Rights: The bill grants rights like data access, correction, portability, and erasure, giving individuals greater control over their data.
- Data Fiduciaries: Businesses handling personal data must act responsibly as data fiduciaries, ensuring data security and compliance.
- Breach Notification: In case of a data breach, businesses must notify affected individuals and the authorities promptly.
- Cross-Border Data Transfer: Data can only be transferred to countries with equivalent data protection laws.
- Penalties: Non-compliance can result in significant penalties, up to 4% of global revenue or Rs. 15 crore, underlining the need for robust data protection.
Businesses must adapt to the DPDPB’s requirements, which include:
- Revised Data Collection: Ensure explicit consent is obtained before collecting personal data, with clear communication about its usage.
- Enhanced Transparency: Update privacy policies to align with the bill’s provisions, making them accessible and understandable.
- Data Security: Implement strong cybersecurity measures, such as encryption and access controls, to prevent breaches.
- Data Localization: Sensitive data must be stored in India, requiring businesses to invest in local data storage solutions.
- Employee Training: Ensure employees and third-party vendors comply with data protection norms.
To comply with the DPDPB, businesses should:
- Conduct data audits to understand the types of personal data collected and its usage.
- Revise privacy policies and implement clear consent mechanisms.
- Strengthen data security measures and appoint a Data Protection Officer (DPO).
- Stay updated on amendments to the bill and adjust practices as needed.
The DPDPB represents a significant shift in India’s data protection landscape. Businesses must act now to ensure compliance, avoid penalties, and protect customer trust. At LawgicalIndia Business Developers Pvt Ltd, we specialise in helping businesses navigate these new data protection regulations. Our expert team can guide you through compliance, ensuring your business remains secure and compliant.
