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Centre might exclude early-stage startups from data bill provisions

Updated: Dec 05, 2022 08:36:30am
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Centre might exclude early-stage startups from data bill provisions

New Delhi, Dec 5 (KNN) The Ministry of Electronics and Information Technology (Meity) is likely to exempt early stage startups from complying with norms under proposed Digital Personal Data Protection bill, reported Business Standard quoting an official source.

As per the report, the government may provide exemption for a limited period to assist startups in developing their business models and to ensure that innovation is not stifled due to compliance burden.

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The draft of the DPDP has proposed an exemption only for government notified data fiduciaries and data processing entities when it comes to data collection, data sharing, giving information around data processing etc.

Last week, Minister of State for Electronics and IT, Rajeev Chandrasekhar had said the government will not be able to violate the privacy of citizens under the proposed law as it will get access to personal data only in exceptional circumstances like national security, pandemic and natural disasters.

The minister said the bill does not exempt government or related entities in case of data breach. The government has issued a draft DPDP bill which proposes a penalty of up to Rs 500 crore for violation of DPDP rules.

Another key feature of the proposed DPDP bill is to remove a section from the IT Act which provides an option of compensation to individuals impacted by data breach.

When asked about the reason for removing the compensation clause, the source said the government does not want people to misuse the provision of the bill and make a business out of it to earn compensation.

The DPDP draft is open for public comments and suggestion till December 17.Past that date, the government is likely to propose the draft before Parliament in Budget Session.   (KNN Bureau)

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