Cross border data flow rules will be finalized to ensure no disruption: IT Minister to Nasscom

Union IT and electronics minister Ashwini Vaishnaw told industry body NASSCOM (National Association of Software and Services Companies) that all rules in the Digital Data Protection Bill 2022 will be put up for public consultation while rules for cross-border data flows will be finalized in a manner that ensures data flow is not disrupted. 

Vaishnaw also told the industry that the bill has been simplified not only to make it easily understandable but also to ensure that it can be implemented across use cases and sectors. 

The industry body along with heads of startups and SMEs met Vaishnaw and Alkesh Kumar Sharma, secretary of MeitY, last week for a discussion on the revised Bill. During the meeting, Vaishnaw also suggested that startups should start testing some of the proposals in the Bill in specific use cases to “identify gaps” and then provide their suggestions to the ministry. 

Vaishnaw also assured that the Data Protection Board, one of the proposals in the revised bill, will be designed in a manner that would make the mechanism for filing data protection complaints accessible to “every strata” of society. According to the revised Bill, the Union government will set up a Data Protection Board of India for the allocation of work, receiving complaints, and pronouncing decisions. 

The first draft of the Digital Data Protection Bill 2022 was published last month for consultation and feedback from the industry. The last date for submission of comments by industry stakeholders is December 17. The revised bill replaces the PDP Bill of 2019, which was withdrawn in August after a joint parliamentary committee (JPC) raised several concerns with it and asked for sweeping amendments. 

According to NASSCOM, the industry has welcomed the revised bill and feels that compared to previous drafts of the 2019 bill, it has been “simplified” by focusing only on personal data. 

The industry body also welcomed the idea of creating a framework for cross-border data flows. It added that a framework prepared in consultation with the government, public, and regulators in different sectors will provide a “clear and proportionate” framework. Further, the industry body hailed rules that would help users manage their consent. 

“NASSCOM will continue to work with the government and the industry, and make recommendations that are aimed to not only further strengthen this bill from a privacy and innovation perspective but also bolster India’s narrative as a trusted global partner for all invested in digital transformation,” the industry body added.