The authorities has proposed that corporations developing progressive applied sciences for public good can avail of exemption from the proposed data privacy rules for a restricted interval.


As half of the draft Data Protection Bill, 2019, cleared by the Union Cabinet final week, the Centre has proposed the creation of a “regulatory sandbox” to make sure that the privacy regulation doesn’t curtail the flexibility of corporations, particularly start-ups innovating round rising applied sciences, within the preliminary phases.



Sandbox refers to a testing setting that allows remoted execution of new software program or programme earlier than its mass roll-out.


“The authority shall, for the purposes of encouraging innovation in artificial intelligence (AI), machine learning (ML) or any other emerging technology in public interest, create a sandbox,” the draft Bill learn.


“Any data fiduciary whose privacy by design policy is certified by the Authority under Sub-section (3) of Section 22 shall be eligible to apply, in such manner as may be specified by regulations, for inclusion in the sandbox created under Sub-section (1),” it added.


With the sandbox provision, the federal government has balanced out selling innovation whereas furthering particular person privacy and state curiosity, stated Arun Prabhu, accomplice at regulation agency Cyril Amarchand Mangaldas.


“Companies developing innovative technology in areas, such as AI/ML and big data may be well placed to avail of this sandbox.”


According to provisions within the Bill, the sandbox might be managed by the data safety authority, which can determine on such requests. Companies can apply for inclusion within the sandbox by furnishing particulars of their progressive use of expertise and its advantages. Upon inclusion, certified entities might be excluded from assortment, storage and objective limitation beneath the Bill, thereby considerably increasing the utilization of the data which are accessible with them.


The exemption might be for a interval of 12 months, however can be renewed twice, taking the utmost potential exemption interval to 36 months.

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