The draft rules on DPDPA suggest that the rules related to the setting up of the Search Committee for selecting the Chairman and members of the DPB, the rules related to the terms of appointment of the DPB chairman, Members and employees will become effective immediately. However the draft rules is silent on when the other provisions of the Act will become effective.
In our interactions with the industry it has been noticed that the industry is still complacent and expects an unlimited time to be available to them for compliance. This perception needs to be changed by the Government setting some target time line for itself through the rules.
We therefore recommend that Rule 1 be expanded and include the following.
a) The DPB shall be formed within 3 months of this notification and commence its operational website within 4 months of the notification.
b) Provisions related to Registration of Consent Manager shall commence as soon as the DPB becomes operational.
c) Compliance requirements such as Consent, Data Breach Notification and Restrictions on transfer of data outside India (Where applicable) shall be required before 9 months from the notification.
d) Penalties under Section 33 shall be effective after one year from notification. (DPB may use its discretion to use the provision of voluntary undertaking to grant time where it is considered necessary).
e) Section 44 DPDPA 2023 shall be effective along with Section 33 ( so that Section 43A of ITA 2000 (Information Technology Act-2000) will be replaced only after the penalty clauses under DPDPA 2023 becomes effective. )
f) Provisions of 10(2)(a) [DPO] may be made effective within 9 months from the date of notification.
g) All other residual requirements under the Act shall be deemed applicable at the end of one year from notification.
h) Non Corporate Data Fiduciaries and those who fall under the category of SME/MSME shall be provided an additional time of 6 months over and above the time given for other entities for each of the different provisions.
Your comments are welcome.
Naavi
