["Presently, the discussion is predictably centred around devices and
infrastructure to expand the reach of the ecosystem nationwide. But
there are critical issues relating to the rights, privacy and data
security of transactees that must be addressed."

The author is an "independent" member of the Rajya Sabha from
Karnataka. The BJP voted for him. He's also a supporter of the
"demonetisation":
Rajeev ChandrasekharVerified account ‏@rajeev_mp  5h5 hours ago
#DeMonetisation is a clean-up of decades of accumulated filth writes
@sgurumurthy ! I agree]

http://scroll.in/article/823792/as-india-goes-digital-data-security-and-privacy-rights-must-be-strengthened

DIGITAL SECURITY

One item Digital India must urgently address – strengthening data
security and privacy rights

To protect the information of 1.2 billion citizens, a serious, focused
and apolitical discussion is required.

Rajeev Chandrasekhar

The government’s demonetisation decision of November 8 has, while
kicking off a noisy debate on its disruptive, positive and negative
impacts, launched the country on the irreversible path of digital
payments as a substitute to cash.

While the pros and cons of demonetisation will be debated for some
time, expanding digital transactions in our economy has obvious
advantages. However, the creation of the digital payments ecosystem
needs to be well-planned, keeping the citizen in mind. ***Presently,
the discussion is predictably centred around devices and
infrastructure to expand the reach of the ecosystem nationwide. But
there are critical issues relating to the rights, privacy and data
security of transactees that must be addressed.*** [Emphasis added.]

With this push for digital payments, and many of its most important
governance reform initiatives such as the banking-for-all Jan Dhan
Yojana, Aadhaar and Digital India well underway, the government can no
longer ignore these issues. India is among the top five nations most
vulnerable to cyber attacks. As government policy and programmes
increasingly move to digital platforms, citizens could find themselves
vulnerable to data misuse and without any rights to protect that
information and data.

In this backdrop, the statement of the government’s lawyer to the
Supreme Court in July last year, that privacy is not a fundamental
right, is a position that needs to be revisited. The time is ripe for
the government to begin the process of architecting a comprehensive
privacy and data security framework. With the security and privacy of
1.2 billion citizens at risk, a serious, focused and apolitical
discussion on the subject is required. What are the rights of those
whose data is held with companies and government departments? Do we
have the legal frameworks, resources and infrastructure in place to
protect these rights? What are the immediate areas of intervention for
the government? I have long argued for a charter of digital rights – a
kind of Magna Carta for digital Indians – and it is now time to begin
thinking about this seriously.

Legal limitations
The current Information Technology Act, with its limited data
protection and privacy-related provisions, does not provide for an
all-encompassing, comprehensive legal framework for privacy and data
security. There are glaring gaps that must be plugged through such
measures:

Expansion of the definition of sensitive personal data under Rule 3 of
the Sensitive Personal Data Rules: The categories of sensitive
personal information (passwords, financial information, sexual
orientation among others) are inadequate. Other categories of
information such as mobile big data, machine-to-machine (M2M) data,
and user behaviour should also fall in the ambit of sensitive personal
data. Emails and chat logs as well as records of internet activity,
including online search history, are particularly vulnerable to abuse
and misuse.

Government agencies and departments, non-profits must also be
accountable to ensure data protection: At present, Section 43A of the
Information Technology Act only covers body corporates engaged in
“commercial or professional activities”. This excludes from any
accountability government agencies such as the Unique Identification
Authority of India, which issues Aadhaar numbers, and others that are
among the biggest gatherers of data in the country.

Section 72A of the Information Technology Act needs revisiting: Under
this section, third parties or intermediaries can only be held liable
if it is proved that they made a violation “with the intent to cause
or knowing that he is likely to cause wrongful loss or wrongful gain
discloses, without the consent of the person concerned, or in breach
of a lawful contract”. This demands that the petitioner prove not just
the violation but also that it resulted in gain or loss. Most data
holders invoke this defence to dodge accountability, as shown by two
cases reported last year, one involving Airtel and Israel-based Flash
Networks and the other related to Mahanagar Telephone Nigam Limited in
which the telecom service providers were accused of inserting spy
codes in browsers.
Accountability is key
These are just some of the weaknesses in the current Information
Technology Act, making a review necessary. Meanwhile, the Supreme
Court has constituted a nine-member bench to examine the validity of
the assertion that the right to privacy is a constitutional right
under Article 21. Regardless of the outcome of that, the government
can immediately and urgently review the need for a legislation
ensuring data security and privacy to citizens.

It is said that data is the new oil. With the push towards e-payments
and making India a digital economy, the ramifications on citizens are
significant. Most citizens do not know what kind of data is being
collected by digital payment portals and apps. The transformation to a
digital payments system will involve significant changes in consumer
behaviour and habits. In the short term, digital payments will depend
on very weakly secured Unstructured Supplementary Service Data (a
platform for mobile banking) and public hotspots, given that a large
number of Indians are still not connected to the internet. This means
that the only way to incentivise merchants, payment gateways and other
players in the digital payments ecosystem to be responsible is to
ensure a legislative framework that makes them accountable for user
data security and privacy. To do this now would be the right thing,
rather than wait for a crisis of widespread online fraud and misuse to
impact and slow down the move to digital payments.

The writer is a member of Parliament from the Rajya Sabha.


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