Companies may get 1-year to comply with Digital Personal Data Protection Act
The Digital Personal Data Protection Bill, 2023, was passed by both Houses of Parliament in the Monsoon session.
NEW DELHI: The government is expected to provide a maximum of one year for entities to comply with the norms of the Digital Personal Data Protection Act 2023. The government will also establish a Data Protection Board and issue guidelines for eight rules, including consent management, within the next month or 45 days. “Once we receive submissions from industry stakeholders, we will make a decision regarding the transition period for companies.
However, one thing is certain: We will not grant two years or 18 months of time as demanded by industry representatives,” said Rajeev Chandrasekhar, Minister of State for Electronics and IT. While speaking with industry representatives from tech companies such as Meta, Lenovo, Dell, Netflix, and others, the minister said the rules would be implemented in a graded manner. He added that large technology companies such as Meta, Twitter or any others would be given less time to comply, while start-ups and MSMEs would be granted more time to adopt the law.
“These small start-ups and MSMEs require additional time to adapt to the new law. While I don’t believe that large companies like Meta or Twitter need more time to comply, as they are already well-equipped and technically capable of adopting the new law,” added the minister.
The Digital Personal Data Protection Bill, 2023, was passed by both Houses of Parliament in the Monsoon session. The Act mandates to protect the privacy of Indian citizens. According to the law, data collected from citizens should only be used for the purpose for which it was collected, and the amount of data collected should be limited to what is necessary.
The act also proposes a penalty of up to Rs 250 crore for entities that misuse or fail to protect the digital data of individuals. In case of any grievances, individuals will have the option to approach the Data Protection Board, which will process complaints in accordance with the norms of the act.