India prepares for DPDP Act rules rollout
By MYBRANDBOOK
Just before the final roll out, the Indian government intensifies scrutiny on unauthorised PAN data usage.
The Indian government is preparing to announce the long-awaited administrative rules that will guide the implementation of the Digital Personal Data Protection (DPDP) Act, which was passed in August 2023. According to media reports India’s IT Ministry is likely to notify rules before the Maharashtra assembly elections scheduled for 20 November.
A senior government official suggested that only final approval from the Ministry of Home Affairs is pending, but the process is expected to wrap up well before the polls.
On the same lines, the Indian government is cracking down on unauthorized access to citizens' personal data by fintech and consumer tech companies. The Union Home Ministry has reportedly ordered a halt to these practices, which involve using PAN data to retrieve personal information like names, addresses, and phone numbers. These unauthorised activities often involved “Permanent Account Number enrichment” services, used by loan distribution companies to profile customers based on PAN data for targeted credit offers and financial products.
The government’s focus on preventing misuse highlights the importance of data privacy under the new Act and aims to ensure companies comply with the latest rules. By intensifying these checks, authorities intend to lay a secure foundation for the DPDP Act, fostering a safer data environment.
The DPDP Act will require companies to collect, process, and store user data responsibly, respecting the consent and privacy of individuals. It sets clear guidelines on data handling practices, aiming to give citizens control over their personal data and hold organizations accountable for any misuse. The Act is expected to boost data privacy, align with global standards, and enhance trust in India’s digital ecosystem.
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