INDIA Trends and Developments Contributed by: Shilpa Mankar Ahluwalia, Himanshu Malhotra and Lidia K. Kharmih, Shardul Amarchand Mangaldas & Co
The Draft Rules require strict safeguards, includ - ing encryption/masking, access controls, and breach detection systems to guarantee data protection. Additionally, in the event of a data breach, data fiduciaries are required to quick - ly notify the Data Protection Board and the individual(s) impacted, detailing the scope of the incident and the corrective measures imple - mented. This two-tiered notification approach pushes enterprises to take proactive steps to stop future accidents and fosters responsibility. The Draft Rules also establish particular guide - lines for processing the data of minors and dif - ferently-abled individuals under lawful guardian - ships, requiring parental or guardian consent to be verified prior to data collection. Furthermore, in order to protect data sovereignty and facili - tate global corporate operations, the Draft Rules address compliance standards for cross-border data transfers.
An important change in India’s approach to digital governance is represented by the Draft Rules. The Draft Rules offer an additional layer for a strong foundation for data privacy in India by giving people legal rights and placing explicit obligations on entities handling their data. As is the case with any new regulation, the Draft Rules may have some teething problems when they are first implemented, especially with regard to compliance costs and cross-border limits for small and medium-sized businesses. The suc - cessful implementation of the finalised rules will require stakeholders and legislators to work together to guarantee a safe, open and innova - tive digital future for India.
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