Money Bills vs Financial Bills: What are the Differences, what the Court has ruled
26-08-2023
01:25 PM

What’s in today’s article?
- Why in News?
- Finance Bill
- Money Bill
- Difference between Finance Bill and Money Bill
Why in News?
- Parliamentary Affairs Minister Pralhad Joshi said that the Digital Personal Data Protection (DPDP) Bill, 2023 is an ordinary Bill and not a money bill.
- Earlier, it was reported that Bill was being introduced under Article 117 of the Constitution, which deals with special provisions for Financial Bills.

Finance Bill:
- In a general sense, any Bill that relates to revenue or expenditure is a financial Bill.
- A money Bill is also a specific type of financial Bill, that must deal only with matters specified in Article 110 (1) (a) to (g).
- Financial bills are responsible for the fiscal matters such as government spending or revenue.
- It specifies the amount of money to be spent by the government and the way it is to be spent.
- More specifically, Article 117 of the Constitution deals with the special provisions relating to financial Bills.
- Financial bills are a component of the Constitution and the Union Budget.
Types of Finance Bill:
- Financial Bills (i): Article 117 (1)
- It includes not only the subjects stated in Article 110 of the Constitution but also other legislative provisions.
- Financial bill (i) is comparable to the money bill in two ways.
- Firstly, both of these bills can only originate in the Lok Sabha and not Rajya Sabha.
- Secondly, both the bills can be introduced only on the President's advice.
- This type follows the same parliamentary procedures as any ordinary bill. It follows the same parliamentary process as an ordinary bill in all other respects.
- The president may call a joint session of the two Houses if they cannot agree on such a measure. This will end the impasse.
- When the measure is presented to the President, he has three options: to approve it, decline to do so, or send it back to the Houses for further consideration.
- Financial Bills (ii): Article 117 (3)
- A financial bill (II) does not contain any of the items listed in Article 110, but it does contain measures impacting Consolidated Fund of India spending.
- It is regarded as an ordinary bill and is handled in every way by the same parliamentary process as an ordinary bill.
- This bill's sole unique feature is that neither House of Parliament may pass it without the President first requesting that it be brought up for consideration.
- Financial bill (ii) can be filed in either house of the Parliament and the President's approval is not required.
- However, the President's suggestion can be taken during the consideration stage of the bill.
Money Bill:
- Article 110 defines a money Bill as one containing provisions dealing with taxes, regulation of the government’s borrowing of money, and expenditure or receipt of money from the Consolidated Fund of India, among others.
- Article 109 delineates the procedure for the passage of such a Bill and confers an overriding authority on the Lok Sabha in the passage of money Bills.
- The Speaker certifies a Bill as a Money Bill, and the Speaker’s decision is final.
- Over the last seven years, the government has introduced multiple legislations through the money Bill route, the most notable of which are the Aadhaar Act, 2016, and the Finance Act, 2017.
What is the Difference Between Money Bills and Financial Bills?
- While all Money Bills are Financial Bills, all Financial Bills are not Money Bills.
- E.g., the Finance Bill which only contains provisions related to tax proposals would be a Money Bill.
- However, a Bill that contains some provisions related to taxation or expenditure, but also covers other matters would be considered as a Financial Bill.
- The Compensatory Afforestation Fund Bill, 2015, which establishes funds under the Public Account of India and states, was introduced as a Financial Bill.
- The procedure for the passage of the two bills varies significantly.
- The Rajya Sabha has no power to reject or amend a Money Bill.
- After being passed by the Lok Sabha, money Bills are sent to the Rajya Sabha for its recommendations.
- Within 14 days, the Upper House must submit the Bill back to the Lower House with its non-binding recommendations.
- If the Lok Sabha rejects the recommendations, the Bill is deemed to have passed by both Houses in the form in which it was passed by the Lok Sabha without the recommendations of the Rajya Sabha.
- Even if the Rajya Sabha doesn’t respond with its recommendations within 14 days, the same consequences would follow.
- However, a Financial Bill must be passed by both Houses of Parliament.
- The Rajya Sabha has no power to reject or amend a Money Bill.
- While an ordinary Bill can originate in either house, a money Bill can only be introduced in the Lok Sabha, as laid down in Article 117 (1).
- Additionally, no one can introduce or move money Bills in the Lok Sabha, except on the President’s recommendation.
- Amendments relating to the reduction or abolition of any tax are exempt from the requirement of the President’s recommendation.
- The two prerequisites for any financial Bill to become a money Bill are that
- It must only be introduced in the Lok Sabha and not the Rajya Sabha.
- These bills can only be introduced on the President’s recommendation.
Q1) What is the Digital Personal Data Protection (DPDP) Bill 2023?
The Digital Personal Data Protection Bill, 2023, aims to regulate personal digital data and provide resolution for breaches.
Source: Money Bills vs Finance Bills: What are the differences, what the court has ruled
India’s Nuclear Doctrine & Its Challenges
26-08-2023
01:25 PM

What’s in today’s article?
- Why in News?
- Historical Background of India’s Nuclear Programme
- About Pokhran-I Nuclear Test
- Subsequent Nuclear Tests
- India’s Nuclear Doctrine
- Challenges to India’s Nuclear Doctrine
- Way Ahead
Why in News?
- Recently, a Hollywood movie named ‘Oppenheimer’, based on the life of J Robert Oppenheimer - an American physicist who is known as the "father of the atomic bomb", was released.
- In this context, the article tries to explain India’s nuclear journey and its Nuclear Doctrine.

Historical Background of India’s Nuclear Programme
- India's nuclear programme can trace its origins to June 1945 when Dr Homi Jehangir Bhabha founded the nuclear research centre, the Tata Institute of Fundamental Research.
- India built its first research reactor (Apsara, which was also Asia’s first nuclear research reactor) in 1956 and its first plutonium reprocessing plant by 1964.
- India's military defeat to China in October 1962, provided the Government of India impetus for developing nuclear weapons as a means of deterring potential aggression.
- Also, China conducted its first nuclear test in October, 1964.
About Pokhran-I Nuclear Test
- Physicist Raja Ramanna expanded and supervised scientific research on nuclear weapons and was the first directing officer of a small team of scientists that supervised and carried out the test.
- The test was codenamed 'Smiling Buddha' (conducted on Buddha Purnima) and conducted on May 18, 1974.
- The bomb was detonated on the army base Pokhran Test Range in Jaisalmer, Rajasthan.
- It was the first confirmed nuclear test by a nation that was not a permanent member of the United Nations Security Council (UNSC).
Subsequent Nuclear Tests
- After the 1974 tests, India conducted five tests - three on May 11 and two on May 13, 1998.
- The tests codenamed 'Operation Shakti'/ Pokhran-II were carried out again at the Pokhran test range.
- Following Pokhran-II, the Indian leadership exploited the political utility of its action, which once again attracted international criticism and sanctions, also created political space for, and gave strategic autonomy to India’s decision-making.
- For example, the Indo-US nuclear deal (2008) paved the way for the strategic partnership that now involves high-end technology cooperation from defence to artificial intelligence.
India’s Nuclear Doctrine
- A nuclear doctrine states how a nuclear weapon state would employ its nuclear weapons both during peace and war. India released its Draft Nuclear Doctrine (DND) in August 1999.
- In January 2003, India released its official nuclear doctrine which can be summarized as follows –
- Building and maintaining a credible minimum deterrent;
- A posture of "No First Use" - nuclear weapons will only be used in retaliation against a nuclear attack on Indian territory or on Indian forces anywhere;
- Nuclear retaliation to a first strike will be massive and designed to inflict unacceptable damage.
- Nuclear retaliatory attacks can only be authorised by the civilian political leadership through the Nuclear Command Authority.
- Non-use of nuclear weapons against non-nuclear weapon states;
- However, in the event of a major attack against India, or Indian forces anywhere, by biological or chemical weapons, India will retain the option of retaliating with nuclear weapons;
- A continuance of strict controls on export of nuclear and missile related materials and technologies, participation in the Fissile Material Cut-off Treaty negotiations, and continued observance of the moratorium on nuclear tests.
- Continued commitment to the goal of a nuclear weapon free world, through global, verifiable and non-discriminatory nuclear disarmament.
Challenges to India’s Nuclear Doctrine
- Slow implementation –
- India’s nuclear triad is still a work in progress, which is a three-sided military-force structure consisting of land-launched nuclear missiles, nuclear-missile-armed submarines, and strategic aircraft with nuclear bombs and missiles.
- India’s sea component of the triad is facing difficulties.
- The commissioning of the INS Arighat - the 2nd nuclear-powered ballistic missile submarine being built by India, has ostensibly been delayed.
- Need to Upgrade the Doctrine –
- India’s existing doctrinal principles of ‘credible minimum deterrence (CMD),’ ‘No First Use (NFU),’ and massive retaliation are inadequate to deter its adversaries – China and Pakistan.
- China’s quest for enlarging its nuclear arsenals and delivery systems nullifies India’s commitment to maintain the CMD.
- The persisting Chinese provocations to alter the status quo in the Line of Actual Control (LAC) put a question mark on the original intentions and relevance of the NFU.
Way Ahead
- Ahead of the G7 summit in Hiroshima, Japan’s PM spoke of his desire to use the meeting to “send out a strong message” about the need for a world without nuclear weapons.
- As the chair of G20 this year, India (invited to Hiroshima) has both the leverage and the moral stature to take the lead in working with the international community to reduce the risk of use of nuclear weapons.
Q1) What is the objective of the Non-Proliferation Treaty?
the NPT is a landmark international treaty whose objective is to prevent the spread of nuclear weapons and weapons technology, to promote co-operation in the peaceful uses of nuclear energy and to further the goal of achieving nuclear disarmament and general and complete disarmament.
Q2) What is the role of the International Atomic Energy Agency?
Established in 1957 as an autonomous international organization within the United Nations system, the IAEA carries out programmes to maximize the contribution of nuclear technology to society while verifying its peaceful use.
Source: How a nuclear ‘chain reaction’ and neighbourhood challenges led to India acquiring its n-weapons | PIB | Carnegie Endowment | ORF
Biological Diversity (Amendment) Bill 2021
26-08-2023
01:25 PM

What’s in today’s article?
- Why in News?
- The Biological Diversity Act 2002 (About, salient features)
- The Biological Diversity Amendment Bill 2021 (Need, objectives, criticism, way ahead)
Why in News?
- The Rajya Sabha passed the Biological Diversity (Amendment) Bill 2021 about a week after it was cleared by the Lok Sabha.
- The Act aims to conserve biodiversity, promote its sustainable use and equitable sharing of benefits that arise therein.

Biological Diversity Act 2002:
- About:
- It provides for the preservation of biological diversity in India and provides a mechanism for equitable sharing of benefits arising out of the use of traditional biological resources and knowledge.
- The Act was enacted to meet the obligations under the Convention on Biological Diversity (CBD), because India is a party to the convention.
- Salient features:
- Defines ‘Biodiversity’ and ‘Biological Resource’:
- Biodiversity is the variability among living organisms from all sources and includes diversity within species or between species and of eco-systems.
- Biological resources are plants, animals and microorganisms, their genetic material and by-products (excludes value added products, human genetic material) with actual or potential use or value.
- Provides for National Biodiversity Authority (NBA) and State Biodiversity Boards:
- The NBA is a statutory autonomous body, under the Ministry of Environment Forests and Climate Change, established in 2003 to implement the provisions under the Act.
- State Biodiversity Boards (SBB) have been created in 28 States along with 31,574 Biological management committees (BMCs for each local body) across India.
- Under the Act of 2002, NBA and SBBs are required to consult the BMCs while taking any decision relating to the use of biological resources.
- Access and Benefit Sharing (ABS): The provision of ABS of biological resources or associated knowledge is intended to compensate local communities fairly for the use of biological resources conserved by them.
- Penalties: Any offence under this Act is non-bailable and is cognisable and a violator can be imprisoned for a term up to 5 years or fined up to 10 lakh rupees.
- Defines ‘Biodiversity’ and ‘Biological Resource’:
Biological Diversity Amendment Bill 2021:
- The need to amend the Act of 2002:
- Concerns have been expressed by the Ayush medicine sector, seed sector, industry and research sectors.
- They are urging the government to simplify, streamline and reduce the compliance burden in order to create a conducive environment for collaborative research and investments.
- They are also demanding to streamline the patent application process.
- Ayush companies have been requesting to broaden the scope of ABS and to relax its provisions.
- Objectives/salient features of the Bill: It seeks to -
- Reduce the pressure on wild medicinal plants by encouraging the cultivation of medicinal plants.
- Exempts Ayush practitioners from intimidating biodiversity boards for accessing biological resources or knowledge.
- Bring more foreign investments in biological resources, research, patent and commercial utilisation, without compromising the national interest.
- Facilitates fast-tracking of research, simplifies the patent application process, decriminalises certain offences.
- Make violations of the law related to access to biological resources and benefit-sharing with communities as civil offences.
- Significance of the Bill: It will promote “ease of doing business” and the AYUSH (Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy) industry.
- Criticism of the bill:
- The Bill exempts "codified traditional knowledge" and the AYUSH industry from benefit sharing, denying local communities’ benefits from accessing biological resources.
- The term "codified traditional knowledge" lacks a clear definition, leading to potential exploitation.
- The proposed amendments allow for SBBs to represent BMCs to determine terms of benefit sharing, further marginalising BMCs.
- The proposed Bill comes at a time when the Act hasn’t even been implemented in full.
- For example, there was no data available on money received from companies and traders for ABS and in cases where money was collected, the same wasn’t shared with local communities.
- Way ahead: The Joint Parliamentary Committee, to which the bill was referred, advised that the penalty structure shouldn't be too generous and should be proportionate to the profits realised by organisations using biological resources.
Q1) What is the Convention on Biological Diversity (CBD)?
CBD is the international legal instrument for the conservation of biological diversity, the sustainable use of its components and the fair and equitable sharing of the benefits arising out of the utilisation of genetic resources. It was opened for signature at the Rio de Janeiro Earth Summit and entered into force in 1993.
Q2) What are the different types of Biological Diversity?
Biodiversity is usually explored at three levels - genetic diversity, species diversity and ecosystem diversity. These three levels work together to create the complexity of life on Earth.
Source: Explained | Why is the Biological Diversity Bill facing opposition?
Restrictions on Laptop Imports & Its Implications
26-08-2023
01:25 PM

What’s in today’s article?
- Why in News?
- What was the Decision Taken by the Union Government?
- Why did the DGFT Impose Ban on Import of Laptops & Similar Electronic Goods?
- After the Ban Comes into effect, how will Import of Laptops & Similar Electronic Goods Work?
- Implications of Import Ban on Laptops & Similar Electronic Goods
- Conclusion
Why in News?
- The Union Government’s decision to restrict import of laptops has now been suspended till 1st November, 2023.

What was the Decision Taken by the Union Government?
- On 3rd August, the Union Government imposed restrictions on import of laptops, tablets, all-in-one personal computers and ultra-small computers and servers with immediate effect.
- Any entity or company planning to bring laptops and computers for sale in India will now have to seek permission or license from the government for their inbound shipments.
- The notification in this regard was issued by the Directorate General of Foreign Trade (DGFT).
- The restrictions have been imposed under HSN Code 8471 on seven categories of electronic gadgets.
- The Harmonized System of Nomenclature (HSN) code is a classification system used to identify products for taxation purposes.
- HSN Code 8471 is used to identify devices that are designed to perform data processing tasks.
- This decision has now been suspended till 1st November, 2023.
- The DGFT had to suspend the implementation as custom officials stationed at ports started holding up shipments of the specified electronic items.
Why did the DGFT Impose Ban on Import of Laptops & Similar Electronic Goods?
- The Directorate General of Foreign Trade (DGFT) is the agency of the Ministry of Commerce and Industry, responsible for administering laws regarding foreign trade.
- Although the DGFT notice did not specify any reason behind the change in policy, the move is largely being seen as a push for the Centre’s ‘Aatmanirbhar Bharat’ mission and a bid to reduce dependencies on China.
- Aatmanirbhar Bharat Abhiyan is the mission started by the Government of India in May 2020, towards making India Self-reliant.
- China Factor –
Image Caption: Electronic goods imports by India
- Data released by the Ministry of Commerce and Industry gives us a broad picture of India’s dependence on China with regard to the import of electronic goods such as laptops, computers etc.
- Indeed, India’s imports of the aforementioned class of electronic goods have been steadily rising.
- Whereas in 2019-20, India’s imports of electronic goods stood at $5.3 billion, that figure climbed to $10.3 billion in 2021-22, before declining slightly to hit $8.7 billion in 2022-23.
- Given this fact, a rise in indigenous manufacturing would not only help India reduce its dependence on its diplomatic and business rival but would also help indigenous manufacturers expand their footprint globally.
- Security Factor –
- Another factor behind the restrictions imposed on this class of electronic goods is concerns about ‘security’.
- The restrictions may have been brought in to guard against electronic hardware coming in with “in-built security loopholes that may potentially endanger sensitive personal and enterprise data”.
- Across the world, many red flags have been raised about cybersecurity with regard to Chinese-manufactured electronics.
After the Ban Comes into effect, how will Import of Laptops & Similar Electronic Goods Work?
- An importer of such goods will have to apply for a license on the ban comes into effect.
- The trader should have to be a regular importer to get a license.
- Licenses can be taken for one year and companies can apply multiple times.
- Exemptions have also been given import of one laptop, tablet, all-in-one personal computer or ultra-small form factor computer, including those purchased from e-commerce portals through post or courier.
- Also, there is an exemption from seeking import licensing for up to 20 items per consignment for R&D, testing, benchmarking and evaluation, repair and return, and product development purposes.
Implications of Import Ban on Laptops & Similar Electronic Goods
- Shortly after the announcement, shares of local electronics contract manufacturers have gone up
- Further, the government's announcement is expected to impact companies that import bulk of their products from outside India.
- Big Corporations like Apple will have to either start manufacturing their laptops in India or stop importing their gadgets to India.
- The same rule will also apply to other PC manufacturers like Lenovo, HP, Asus, Acer, Samsung.
- This will likely lead to an increase in the price of current laptops, computers, MacBooks, and Mac Minis in the Indian market.
- The restriction is likely to impact the sales and discounts that retailers and companies offer from time to time.
- If the demand will go up, the retailers will have no incentive to offer any discounts on the laptops.
Conclusion
- Government of India has identified electronics manufacturing as a key priority area for the country’s future growth ambitions and is hoping to attract investments from global electronic corporations.
- Under Production-Linked Incentive 2.0 IT hardware scheme, 44 companies have already been registered and two companies have filed their application on the scheme portal by July 31, 2023.
- However, this import ban on laptops and similar electronic items could open the door for imposition of similar licensing requirements in other sectors, increasing the space for bureaucratic discretion.
- This decision might also lead to unnecessary disruption in the immediate term, create supply shortages and raise prices of electronic equipment.
Q1) What is the role of Directorate General of Foreign Trade?
This Directorate, with headquarters at New Delhi, is responsible for formulating and implementing the Foreign Trade Policy with the main objective of promoting India's exports. The DGFT also issues scrips/authorization to exporters and monitors their corresponding obligations through a network of 24 regional offices.
Q2) What is anti-dumping import duty?
Anti-dumping duties are taxes imposed on imported goods in order to compensate for the difference between their export price and their normal value, if dumping causes injury to producers of competing products in the importing country.
Source: Government to delay implementation of laptop, PC import curbs | Deccan Herald
Hate Speech in India
26-08-2023
01:25 PM

What’s in today’s article?
- Why in News?
- About Hate Speech
- Article 19 and Hate Speech
- Legal Provisions of Hate Speech
- Important Judgements
- Guidelines Issued by Supreme Court to curb Misuse of Legal Provisions w.r.t. Hate Speech
- Suggestions
- News Summary
Why in News?
- Two-judge bench of the Supreme Court observed that defining hate speech is complex but the real problem in tackling hate speech lies in the implementation and execution of law and judicial pronouncements.

About Hate Speech
- Hate speech covers many forms of expressions which advocate, incite, promote or justify hatred, violence and discrimination against a person or group of persons for a variety of reasons.
- It poses grave dangers for the cohesion of a democratic society, the protection of human rights and the rule of law.
- If left unaddressed, it can lead to acts of violence and conflict on a wider scale.
- In this sense hate speech is an extreme form of intolerance which contributes to hate crime.
Article 19 and Hate Speech
- Article 19(2) of the Constitution guarantees freedom of speech and expression to all citizens of India.
- This article is subjected to certain restrictions, namely, sovereignty and integrity of India, the security of the State, friendly relations with foreign States, public order, decency or morality or in relation to contempt of court, defamation or incitement to an offence.
- Provisions in clauses (2) to (6) of Article 19 authorizes the State to restrict the exercise of the freedom guaranteed under the article.
Legal Provisions of Hate Speech
- Hate speech has not been defined in any law in India.
- However, legal provisions in certain legislations prohibit select forms of speech as an exception to freedom of speech.
- Indian Penal Code (IPC) Provisions –
- Under Section 153A of IPC, ‘promotion of enmity between different groups on grounds of religion, race, place of birth, residence, language, etc., and doing acts prejudicial to maintenance of harmony’, is an offence punishable with three years’ imprisonment.
- Section 505 of IPC makes it an offence to making “statements conducing to public mischief”.
- Representation of the People Act, 1951 –
- Section 8 disqualifies a person from contesting election if he is convicted for indulging in acts amounting to illegitimate use of freedom of speech and expression.
- Protection of Civil Rights Act, 1955 –
- Section 7 penalizes incitement to, and encouragement of untouchability through words, either spoken or written, or by signs or by visible representations or otherwise.
- Religious Institutions (Prevention of Misuse) Act, 1988 –
- Section 3(g) prohibits religious institution or its manager to allow the use of any premises belonging to, or under the control of, the institution for promoting or attempting to promote disharmony, feelings of enmity, hatred, ill-will between different religious, racial, language or regional groups or castes or communities.
Important Judgements
- In Pravasi Bhalai Sangathan v. Union of India, the Supreme Court held that the implementation of existing laws would solve the problem of hate speech to a great extent.
- In Jafar Imam Naqvi v. Election Commission of India, the petitioners filed a writ petition challenging the vitriolic speeches made by the candidates in the election and prayed for issue of writ of mandamus to the Election Commission for taking appropriate steps against such speeches.
- However, the Court dismissed the petition on the ground that the petition under Article 32 of the Constitution regarding speeches delivered during election campaign does not qualify as public interest litigation and that the Court cannot legislate on matters where the legislative intent is visible.
Guidelines Issued by Supreme Court to curb Misuse of Legal Provisions w.r.t. Hate Speech
- In Tahseen Poonawalla vs Union of India (2018), the Supreme Court had issued comprehensive guidelines to the Union and State Governments regarding prevention of mob violence, lynching.
- Again, in Kodungallur Film Society case (2018), directions were issued to control vandalism by protesting mobs.
- Major guidelines include –
- Fast-tracked trials,
- Victim compensation,
- Deterrent punishment,
- Disciplinary action against lax law-enforcing officials,
- Nodal officers to be appointed to take note of hate crimes and register FIRs across the nation.
Suggestions
- The Law Commission has proposed that separate offences be added to the IPC to criminalize hate speech more specifically instead of being subsumed in the existing sections concerning inflammatory acts and speeches.
- Similar proposals to add sections to the IPC to punish acts and statements that promote racial discrimination or amount to hate speech have been made by the M.P. Bezbaruah Committee and the T.K. Viswanathan Committee.
- At present, the Committee for Reforms in Criminal Laws, which is considering more comprehensive changes to criminal law, is examining the issue of having specific provisions to tackle hate speech.
News Summary
- A bench of the Supreme Court was hearing a plea against the rallies being organized by Vishva Hindu Parishad and Bajrang Dal in Delhi-NCR region over the communal clashes in Haryana along with other petitions against hate speeches.
- The Court observed that defining hate speech is complex but the real problem in tackling them lies in the implementation and execution of law and judicial pronouncements.
- The bench told the petitioner that a solution to hate speeches can be found through collective efforts alone.
- The bench said that the Supreme Court has specified what hate speech is in the 2018 verdict in Tehseen Poonawalla case and no one can justify hate speech against any community.
- The bench said there should be a mechanism so that no one has come to the Supreme Court time and again.
Q1) When did IPC come into force?
The objective of the Indian Penal Code (IPC) is to provide a general penal code for India. It was enacted on 6 October 1860. It was drafted by the first Law Commission which was chaired by Thomas Babington Macaulay.
Q2) Is Fundamental Right under Article 19 available to non-citizens in India?
The Fundamental Rights guaranteed by Articles 15, 16, 19, 29, and 30 are available only to citizens of India.
Source: Definition of hate speech complex, real problem is implementation and execution of law: SC
Digital Personal Data Protection Bill 2023
26-08-2023
01:25 PM

What’s in today’s article?
- Why in News?
- Need for Digital Personal Data Protection Bill, 2023
- Key Features of Digital Personal Data Protection Bill, 2023
- Significance of Digital Personal Data Protection Bill, 2023
- What are the Concerns w.r.t. the Digital Personal Data Protection Bill, 2023?
- How do Other Countries Regulate Data Privacy?
- Conclusion

Why in News?
- The Lok Sabha allowed the introduction of the long-awaited Digital Personal Data Protection Bill, 2023.
- The Bill seeks to provide for the protection of personal data and the privacy of individuals.
- The Members of Parliament from opposition parties objected to the introduction of the proposed law and called for it to be referred to a Parliamentary committee.
Need for Digital Personal Data Protection Bill, 2023
- Personal data is defined as any data about an individual who is identifiable by or in relation to such data.
- Ministry of Electronics and Information Technology has been deliberating on various aspects of digital personal data and its protection, and has formulated a draft Bill, titled ‘The Digital Personal Data Protection Bill, 2023’.
- The purpose of the draft Bill is to provide for the processing of digital personal data in a manner that recognizes both the right of individuals to protect their personal data and the need to process personal data for lawful purposes.
- The Bill is important because it provides guidance and best practice rules for organisations and the government to follow on how to use personal data including – regulating the processing of personal data.
- The Bill frames out the rights and duties of the citizen (Digital Nagrik) on one hand and the obligations to use collected data lawfully of the Data Fiduciary on the other hand.
Key Features of Digital Personal Data Protection Bill, 2023
- Applicability –
- The Bill will apply to the processing of digital personal data within India.
- It will also apply to the processing of personal data outside India, if it is for offering goods or services or profiling individuals in India.
- Consent –
- Personal data may be processed only for a lawful purpose for which an individual has given consent.
- A notice must be given before seeking consent.
- Notice should contain details about the personal data to be collected and the purpose of processing. Consent may be withdrawn at any point in time.
- For individuals below 18 years of age, consent will be provided by the legal guardian.
- Rights and Duties of Data Principal –
- An individual, whose data is being processed (data principal), will have the right to
- obtain information about processing,
- seek correction and erasure of personal data,
- nominate another person to exercise rights in the event of death or incapacity
- An individual, whose data is being processed (data principal), will have the right to
- Transfer of Personal Data outside India –
- The central government will notify countries where a data fiduciary may transfer personal data.
- Transfers will be subject to prescribed terms and conditions.
- Exemptions –
- Rights of the data principal and obligations of data fiduciaries (except data security) will not apply in specified cases. These include
- prevention and investigation of offences, and
- enforcement of legal rights or claims.
- The central government may, by notification, exempt certain activities from the application of the Bill. These include
- processing by government entities in the interest of the security of the state and public order, and
- research, archiving, or statistical purposes.
- Rights of the data principal and obligations of data fiduciaries (except data security) will not apply in specified cases. These include
- Data Protection Board of India –
- The central government will establish the Data Protection Board of India.
- Key functions of the Board include
- monitoring compliance and imposing penalties,
- directing data fiduciaries to take necessary measures in the event of a data breach, and
- hearing grievances made by affected persons.
- Penalties –
- The schedule to the Bill specifies penalties for various offences such as up to
- Rs 200 crore for non-fulfilment of obligations for children, and
- Rs 250 crore for failure to take security measures to prevent data breaches
- The schedule to the Bill specifies penalties for various offences such as up to
Significance of Digital Personal Data Protection Bill, 2023
- The Digital Personal Data Protection Bill 2023 will be able to keep the personal data of a user safe, and give them more liberty on how to port their personal data.
- Big corporations and consumers will be charged a hefty fine if they fail to do so and don’t follow the norms listed in the bill.
- The bill aims to make entities like internet companies, mobile apps, and business houses more accountable and answerable about collection, storage and processing of the data of citizens as part of "Right to Privacy".
- Once approved, several entities, both public and private, will need to seek consent from users to collect and process their data.
- This means that the right to privacy of each consumer will be valued more, and their data will be more safeguarded than before.
What are the Concerns w.r.t. the Digital Personal Data Protection Bill, 2023?
- Some of the most contentious issues include –
- Wide-ranging exemptions to the government and its agencies,
- Dilution of powers of the data protection board,
- Amendment to the Right to Information Act, 2005.
- The concerns around diluting the RTI Act emanate from the fact that the Bill has a provision to amend the Act that would prohibit sharing of details linked to personal information of government officials.
- Currently, the exemption only applies when such information does not serve larger public interest. However, the Bill proposes to remove the public interest caveat.
- Also, the Bill overrides Section 43A of the Information Technology Act, 2000 which requires companies which mishandle user data to compensate users.
- Government sources said this was because “compensation is a judicial process”, while ex-gratia payments were at the discretion of the governments, and that legally compensation would have to be awarded through civil law.
How do Other Countries Regulate Data Privacy?
- About 70% of countries worldwide have some form of legislation for data protection, according to the United Nations trade agency UNCTAD.
- The EU's General Data Protection Regulation, which came into effect in 2018, is claimed to be the "toughest privacy and security law in the world," and seen as the global benchmark.
- Several nations including China and Vietnam have recently tightened laws governing the transfer of personal data overseas.
- Australia in 2018 passed a bill that gave police access to encrypted data.
Conclusion
- The Digital Personal Data Protection Bill, 2023 extends substantial rights to individuals and provides them with better visibility, awareness, decisional autonomy and control over their data.
- It also obligates companies to comply with the rights of the individuals and provide effective redressal mechanisms linked with significant penalties.
- The Bill also provides for a legislative backing to the Supreme Court’s landmark judgement in Justice K. S. Puttaswamy (Retd) Vs Union of India Case (2017).
- A nine-judge bench of the Supreme Court unanimously held that Indians have a constitutionally protected fundamental right to privacy that is an intrinsic part of life and liberty under Article 21.
Q1) What is Right to Privacy in simple words?
Legally, the right of privacy is a basic law which includes: The right of persons to be free from unwarranted publicity. Unwarranted appropriation of one's personality. Publicising one's private affairs without a legitimate public concern.
Q2) What is an Internet Intermediary?
Internet intermediaries provide the Internet's basic infrastructure and platforms by enabling communication and transactions between third parties. Examples of internet intermediaries are: Network operators, such as BSNL, Airtel and VI.
Source: India data protection bill: What's the concern? | PRS