DPDP bill: Govt proposes Rs 25 crore one-time expense to set up Data Protection Board, annual expenditure of Rs 10 crore

A Data Protection Board has been proposed to be set up under the DPDP bill.

The Digital Personal Data Protection (DPDP) bill, tabled in the Parliament on August 3, proposed a one-time expenditure of Rs 25 crore to set up a Data Protection Board and a recurring expenditure of Rs 10 crore annually for its functioning.

A Data Protection Board has been proposed to be set up under the DPDP bill. The board will be responsible for implementing the various penalties on data fiduciaries, hearing complaints from users, and issuing advice to the Central government to block digital platforms that fail to comply with the law.

"Since the structure of the Board is to be notified after enactment of the bill, at this stage, the financial implication of the setting up and functioning of the Board is estimated to be about twenty-five crore rupees towards initial capital expenditure and ten crore rupees annually for recurring expenditure," the bill read.

The said expenditure is to be incurred from and out of the Consolidated Fund of India.

The bill added that the remuneration of the members of the Data Protection Board would be decided through rules released by the government, which would have to be passed by both houses of Parliament.

Under the proposed law, on receipt of an intimation of personal data breach by a user, the Centre or state governments, the Data Protection Board can direct any urgent remedial or mitigation measures, conduct an inquiry on why the breach happened and levy penalty on a digital platform where the breach happened.

The Board will also have the power to decide the amount of penalty for different types of issues, such as failing to report a breach or take remedial measures, with the quantum ranging from Rs 50 crore to Rs 250 crore.