Stakeholders of India's digital economy have their compliance teams scrambling to carry out strategy updates and get practices to align with the country's first ever law on protection data protection.
The central government recently notified the Digital Personal Data Protection (DPDP) Act, 2023. Under it, most firms that deal with data in a digital format from the largest e-commerce platforms to fintech to information technology (IT) services firms to ride-hailing platforms to health-technology startups - have the legal obligation to ensure the safe collection, processing and sharing of personal data that they receive from their customers.
The law asks platforms to take "reasonable security safeguards" to prevent data breaches. An incident of data breach may lead to an existential threat to their businesses, with penalties of up to ₹250 crore and a potential blocking of services for repeated violations.
The enforcement of the new law will be a major challenge for digital platforms, given the current level of data security preparedness.
Security risks
According to a recent study by Cisco, only 24 per cent of Indian organisations have a "mature" level of readiness to withstand modern cybersecurity risks, despite a growing dependency on remote work. What's more, 90 per cent of companies in India expect cybersecurity incidents to disrupt their business in the next 1224 months.
This story is from the August 21, 2023 edition of Business Standard.
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This story is from the August 21, 2023 edition of Business Standard.
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