As start-ups complain, Govt looks to ease data localisation norms

• MeitY is looking at diluting the norms related to data localisation requirements in current draft of the personal data protection Bill.

Data localisation

• Storage of data on any device physically present within the borders of specific country where data was generated.
• Issues have been raised that data localisation requirements in the current bill are too compliance intensive and could hamper ease of doing business.

Issues raised around data localisation clause

• Compliance issue
• Draft Bill mandates that entities dealing with users’ personal data should keep that within India.
• Start-ups use many third-party services from companies who may not have a physical presence in India and a hard localisation mandate impedes cross-border business.
• Many start-ups have customers outside of India and localisation mandates could make it tricky for them to do business with international customers.

Prelims take away

• Data localisation