Sensitive personal data can be processed overseas with individual's consent

The Data Protection Bill, which has been cleared by the Cabinet on Wednesday, envisages "sensitive" personal data to be stored in India but it can be processed outside the country with the explicit consent of the individual concerned.

The sensitive personal data will include health records, financial data, sexual orientation, biometrics, genetic data, transgender status, religious or political beliefs or affiliations, said the official source.

However, "critical" personal data, which is another classified data, can only be stored and processed in India and will not leave the country. What constitutes "critical' data" will be defined by the government at the time of framing regulations.

Sources said the data protection Bill does not require companies to store and process "all" personal data in India. The Bill will be introduced in the current session of Parliament, said a source.

The Bill will let government to request non-personal data from any company for "planning". The social media platforms will have to develop a verification mechanism that is voluntary for users but will decrease anonymity.

Companies may face a penalty of up to Rs 15 crore or 4 per cent of global turnover for major violations under the proposed Personal Data Protection law, according to the official source.

"In case of major violations, Personal Data Protection Bill proposes penalty of up to Rs 15 crore or 4 per cent of global turnover (whichever is higher). For minor violation, penalty of Rs 5 crore or 2 per cent of global turnover is proposed," a source said.

"The data privacy law exempts processing of data without consent in case of issues around sovereignty, national security and court order," the source said.


Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

Business Standard is now on Telegram.
For insightful reports and views on business, markets, politics and other issues, subscribe to our official Telegram channel