Government announcement- New DPDP bill exemption for Indian startups
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Government announcement- New DPDP bill exemption for startups

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DPDP Bill Exemption : According to a government source, the government is considering exempting early-stage startup from the new Digital Personal Data Protection bill’s regulations.

To help startups develop their business models and to make sure that innovation is not hindered by the burden of compliance, the exemption may be granted for a brief time.

In order to exempt early-stage companies from the requirements of the DPDP (Digital Personal Data Protection) bill, Meity (Ministry of Electronics and Information Technology) is considering improving the proposed legislation.

The insider, who wished to remain anonymous, said: “This may be for a short time period in circumstances where they may be undertaking some kind of data modelling etc to build their answer.”

When it comes to data collection, data sharing, providing information about data processing, etc., the draught DPDP has proposed an exception exclusively for government-notified data fiduciaries and data processing firms.

The government won’t be able to violate citizens’ privacy under the proposed law, according to last week’s statement from Rajeev Chandrasekhar, Minister of State for Electronics and IT, as the government will only have access to personal information in exceptional situations like emergencies involving national security, pandemics, or natural disasters.

The minister claimed that in the event of a data breach, the bill does not exempt the government or affiliated entities. A draught DPDP bill that has been released by the government suggests a fine of up to Rs 500 crore for breaking DPDP rules.

The bill also suggests eliminating a provision of the IT Act that gives people affected by data breaches the option of receiving compensation.

When questioned about the removal of the compensation clause, the source stated that the government did not want anyone to take advantage of the bill’s provision and turn it into a company in order to receive pay.

The administration will likely present the text of the measure to Parliament during Budget Session after receiving public opinions on it through December 17.