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Data Protection Bill: Government proposes penalty of up to Rs 500 crore for each data breach under Data Protection Bill

New Delhi: The government has increased the penalty amount to Rs 500 crore for violating the proposed provisions under the draft Digital Personal Data Protection Bill 2022 released on Friday. The draft Personal Data Protection Bill in 2019 proposes to impose a penalty of up to Rs 15 crore or 4 per cent of the global turnover of an entity.

By Priyanka Verma 
Updated Date

New Delhi: The government has increased the penalty amount to Rs 500 crore for violating the proposed provisions under the draft Digital Personal Data Protection Bill 2022 released on Friday. The draft Personal Data Protection Bill in 2019 proposes to impose a penalty of up to Rs 15 crore or 4 per cent of the global turnover of an entity.

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The draft proposes to set up a Data Protection Board of India, which will carry on functions as per the provisions of the bill. “The purpose of this Act is to provide for the processing of digital personal data in a manner that recognizes both the right of individuals to protect their personal data and the need to process personal data for lawful purposes,” stated the Bill.

“If the Board determines at the conclusion of an inquiry that noncompliance by a person is significant, it may, after giving the person a reasonable opportunity of being heard, impose such a financial penalty as specified in Schedule 1, not exceeding rupees five hundred crore in each instance,” the draft said.

The draft has proposed a graded penalty system for data fiduciaries that will process the personal data of data owners only in accordance with the provisions of the Act. Three months after the withdrawal of the Digital Personal Data Protection Bill from the lower house of the Parliament, the Central government has now come up with a new draft Bill seeking views from the public.

The draft Personal Data Protection Bill in 2019 proposed a penalty of Rs 15 crore or 4 per cent of the global turnover of an entity. The same set of penalties will be applicable to the data processor — which will be an entity that will process data on behalf of the Data Fiduciary.

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The draft proposes a penalty of up to Rs 250 crore in case the Data Fiduciary or Data Processor fails to protect against personal data breaches in its possession or under its control. The Union Minister for Railways, Communications, Electronics and Information Technology Ashwini Vaishnaw today tweeted: “Seeking your views on draft Digital Personal Data Protection Bill, 2022.”

“If the Board determines at the conclusion of an inquiry that noncompliance by a person is significant, it may, after giving the person a reasonable opportunity of being heard, impose such a financial penalty as specified in Schedule 1, not exceeding rupees five hundred crore in each instance,” the draft said.

“The strength and composition of the Board and the process of selection, terms and conditions of appointment and service, removal of its Chairperson and other Members shall be such as may be prescribed,” the draft added. The draft is open for public comment till December 17.

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