The 4 Types of Data Privacy and 3 Ways to Protect Data in India

There were more than 13.9 lakh cybersecurity incidents in India in 2022, according to government reports. The significance of data privacy and data protection in India has become increasingly paramount because of such recurrent attacks.  A data breach is no joke as you will be subject to ransom, lose data, lose customers, and even your goodwill. Data of over 100 million Flipkart, Airtel, Amazon, and Jiomart customers were sold on the dark web for $6,000. Razorpay, an online payment gateway, lost 7.3 crore worth of funds in 831 transactions as hackers stole them. You will find countless stories like this. Data privacy and security are the need of the hour for businesses of all sizes.

It is crucial to understand data privacy and security to safeguard our digital future and address the complexities of privacy and data protection in India.

In this blog, you will learn:

• What are the legal frameworks and regulations governing data privacy in India?
• What are the potential risks and consequences of data breaches in the Indian context?
• How can individuals and organizations protect sensitive data in India?
• What measures should businesses adopt to ensure compliance with India’s data privacy and security regulations?

What are the Legal Frameworks and Regulations Governing Data Privacy in India?

Before we get into the nitty-gritty of how data privacy has become a critical concern, let’s first understand what is data privacy. It refers to the right of individuals to control their data, limiting what a website or an organization can collect. As a result, several legal frameworks and regulations regulate data privacy in India, protecting users’ data like history, financial, and property information. This is essential as private information can be used to monitor or trace the user’s identity. Data privacy regulations aim to prevent unauthorized access by third parties.

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Types of Data Privacy

Let’s explore the different types of data privacy followed in India:

1. Online Privacy

Websites often have a privacy policy where they have to explicitly state why they intend to collect and use your data. Therefore, users must understand these policies to ensure their data is handled responsibly.

2. Residential Information Privacy

It pertains to the information about a citizen’s residence and cost of living. When a citizen’s private information is collected, it should be kept private and secure.

3. Medical Privacy

This involves the protection of a user’s medical information. Such information should not be disclosed to anyone other than the organization and the user. Additionally, doctor-patient confidentiality must be maintained, or it amounts to a breach of medical privacy.

4. Financial Privacy

Financial privacy is concerned with the collection of financial information by a website or an organization. If this information is not stored and protected properly, it can lead to fraudulent use of credentials by hackers.

Legal Frameworks and Regulations Governing Data Privacy in India

India has a set of legal frameworks and regulations that oversee data privacy. These include the Information Technology Act of 2000 and the upcoming Personal Data Protection Bill of 2019.

The Information Technology Act, 2000

This act includes provisions related to data disclosure and the failure to protect data. Specifically, Section 43A stipulates that if any corporate body is negligent in maintaining reasonable security practices, resulting in wrongful loss or gain to any person, they are liable to compensate the affected party.

The Personal Data Protection Bill, 2019

This bill aims to establish a comprehensive framework for personal data protection in India. Furthermore, it introduces concepts like ‘data fiduciary’ and ‘data processor’ and includes provisions for collecting, storing, and processing personal data.

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What are the Potential Risks and Consequences of Data Breaches in the Indian Context?

The risks and repercussions of data breaches in India are substantial and diverse. Firstly, data breaches can lead to substantial financial losses. Secondly, these losses can occur as direct results of the breach, through fraud or theft, or as indirect results, that is, through reputational damage leading to the loss of business.

1. Financial Impact of Data Breaches

Data breaches can lead to direct financial losses in several ways. For example, confidential data like credit card details or bank account numbers can be exploited for fraud or theft. Additionally, the stolen data can be sold on the black market, providing another source of income for cybercriminals.

2. Reputational Damage and Loss of Trust

Data breaches can also lead to significant reputational damage. When customers entrust their personal information to a company, they expect the company to protect it. Hence, a breach can lead to a loss of trust, which can, in turn, result in a loss of customers. This could be especially detrimental for businesses heavily dependent on customer trust, such as those operating in the financial or healthcare industries.

3. Legal Consequences

Data breaches can also lead to legal consequences: Companies that fail to protect customer data can face penalties, fines, and even imprisonment, under laws such as the Information Technology Act of 2000 and the Digital Personal Data Protection Bill, of 2022.

How Can Individuals and Organizations Protect Sensitive Data in India?

Implementing Robust Security Measures

Implementing robust security measures is one of the most important steps individuals and organizations can take to protect sensitive data. This includes using strong and unique passwords, regularly updating and patching software, and using encryption strategies to protect data in transit and at rest.

Educating Employees and Customers

Another crucial measure involves educating employees and customers about the significance of data security and the actions they can take to safeguard their data. This may entail conducting training sessions to help them identify phishing attempts, comprehend the significance of employing robust passwords, and understand the hazards of divulging sensitive information over unsecured networks.

Regularly Reviewing and Updating Security Practices

Finally, organizations need to regularly review and update their security practices in order to understand the latest threats and vulnerabilities. This includes conducting regular security audits, staying current with cybersecurity trends, deploying patches, etc.

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What Measures Should Businesses Adopt to Ensure Compliance With Data Privacy and Security Regulations in India?

Developing a Comprehensive Data Protection Policy

Businesses should develop a comprehensive data protection policy that complies with Indian and other countries’ privacy rules.  The policy should clearly outline how the business collects, uses, stores, and protects personal data.  It should be easily accessible and understandable for customers.

Appointing a Data Protection Officer(DPO)

Businesses should also appoint a DPO to oversee their data protection efforts. The DPO’s responsibilities include

• Offering assistance regarding data protection laws and regulations
• Ensuring adherence to these laws and regulations
• Serving as a liaison for data subjects and regulatory authorities

Implementing a Consent Management Platform (CMP)

A CMP can help businesses manage user consent and data collection activities, ensuring they comply with data protection laws and regulations.

Regularly Reviewing and Updating Data Protection Practices

Lastly, businesses should regularly review and update their data protection practices to comply with changing laws and regulations. Consequently, this can include conducting regular audits of data protection practices, staying up-to-date with data protection laws and regulations changes, and updating company policies and procedures as necessary.

How Does Emeritus Teach You to Protect Sensitive Data and Comply With Data Privacy Laws?

Emeritus offers an array of online data science courses in collaboration with top educational institutions. These courses equip learners with data privacy and security knowledge, practical skills for managing and analyzing data, and a deep understanding of data privacy and protection laws in India. Explore data science courses hosted by Emeritus today and advance your data science career further.

By Promita Sanyal

Write to us at content@emeritus.org