Govt. approves IT Act amendments as India looks to plug data theft incidents
surojit.c@ibtimes.co.in
The Indian government is working to make data protection laws more stringent even as India's $ 8 billion Business Process Outsourcing (BPO) Industry is cleaning up its act after a television program exposed critical security lapses in call centers by documenting stories of unscrupulous middlemen who offered to sell credit card data, along with passport and driving license numbers, which are stolen from call centers in India, to the highest bidder.
According to sources close to the development, after delaying nearly for a year, the communications and IT ministry as well as the Union Cabinet have now approved the much-awaited amendments to the IT Act 2000 to tighten data protection norms in the country.
The new provisions include greater emphasis on digital signatures, new security practices and procedures for e-governance and other technology applications.
In line with the recommendations made by the United Nations Commission on International Trade Law, a model law on electronic signatures, an effort will be made to promote development of alternative technologies for authentication of electronic records.
An added benefit will be that frequent legislative changes will not be needed each time a new and equally effective technology is evolved.
According to news sources, the Union Cabinet hurriedly approved the amendments following Prime Minister Dr. Manmohan Singh's assurance to investors abroad that India was sensitive to their concerns about data theft and would plug loopholes.
"Concerns have been raised within the country and by customers abroad regarding the adequacy of data protection and privacy laws in the country," Parliamentary Affairs Minister P.R. Dasmunshi said while briefing reporters on the Cabinet meeting.
"Thus, there is a need to strengthen legislation on data protection and privacy," he said.
The amendments were aimed at preventing computer misuse like video voyeurism, identity theft, e-commerce frauds like phishing, frauds on online auction sites, sending offensive e-mails and multimedia offences, Dasmunshi said.
In line with the recommendations, the Union Cabinet has approved a new section, which not only puts the responsibility on 'body corporate' or companies (including BPOs) to protect sensitive data, but also provides for a civil liability with damages of up to Rs. 5 crore ($ 1.1 million) in case of any negligence.
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