Solution

The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the draft Digital Personal Data Protection (DPDP) Bill, 2023. The bill will be presented in the upcoming monsoon session of Parliament for approval. The draft bill proposes a significant increase in penalty amounts of up to Rs 500 crore for violating provisions. It also includes provisions to ease rules on cross-border data flows. The bill establishes a new regulatory body called the Data Protection Board. The board can impose penalties of up to Rs 500 crore for significant non-compliance. The draft bill introduces six types of penalties for non-compliance, including penalties for failure to maintain security safeguards, failure to notify data breaches, and non-fulfillment of obligations related to children's data.