Deputy governor of the RBI has proposed a new data law to protect customers’ privacy

T Rabi Sankar was of the view that the new regulation is essential to protect consumers privacy but the monetisation of customer data can be done in a responsible manner.

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T. Rabi Sankar, deputy governor of the Reserve Bank of India, advocated for legislation on September 12 in order to safeguard consumers’ privacy and guarantee that the monetization of their data is done responsibly.

The government removed the Personal Data Protection Bill from the Lok Sabha earlier in August. Although the Centre was optimistic that new law will be passed by the next budget session of Parliament, which typically begins by the end of January, IT Minister Ashwini Vaishnaw had stated.

Stating that India is extremely data rich as digitalisation is growing a rapid pace, Shankar said, “Data means money. Data can be monetised. Therefore, data is significant value to business but at the same time, we will have to have regulations in place, primarily have laws in place, followed by regulations in place, which ensures that customer data is not only safe, that customers privacy is not only protected but the monetisation of customer data is done in a responsible manner.”

He went on to say that data should be monetized with “some level” of consent.

The government earlier in August withdrew the Personal Data Protection Bill, which called for limitations on the use of personal data without citizens’ express agreement. Additionally, it suggested creating a Data Protection Authority.