Cybersecurity Compliance: The Need of Corporate Entities
As the world is advancing and moving towards the growth of digitalisation, there is continuous threat of cyber attacks in India, cybersecurity has emerged as a critical concern. Cybersecurity must now be given the top priority due to the growing dependence on networked systems and the quick development of cyberthreats, there was never been a greater need for the individuals, corporate entities, and government to safeguard the sensitive data.
An essential component of our digital world is cybersecurity. It includes the methods and tools used to protect data, networks, and computer systems from online attacks. As technology is used more and more in every aspect of life, cybersecurity has become increasingly important.
Individuals, organizations, and even entire countries are at danger from cyberattacks, which can range from basic hacking efforts to complex data breaches. These assaults have the potential to breach private data, cause monetary losses, and harm one’s reputation. Strong cybersecurity measures are necessary to lessen these hazards.
CYBERSECURITY LAWS IN INDIA
- Information Technology Act, 2000
In 2000, the Information Technology Act became India’s first cybersecurity law.
It directs Indian cybersecurity laws, establish data security guidelines, and control cybercrime, the Indian Parliament passed the IT Act of 2000, which is overseen by the Indian Computer Emergency Response Team. Among many other things, it safeguards the private sector, e-banking, e-commerce, and e-governance.
- Information Technology Rules, 2011
The Information Technology (Reasonable Security Practices and Procedures and Sensitive Personal Data or Information) Rules 2011 (Privacy Rules) are another significant piece of cybersecurity law within the IT Act.
The restriction of specific speech, updated penalties and violation costs for cybercrime, cheating, defamation, and non-consensual posting of private photographs, and measures for the control of intermediaries are among the most important modifications.
- National Cyber Security Policy, 2013
The National Cyber Security Policy 2013 was published by the Department of Electronics and Information Technology in 2013 as a security framework to help both public and commercial enterprises better defend against cyberattacks.
The National Cyber Security Policy aims to strengthen the safety of India’s cyber environment by developing more dynamic rules. Through training and skill development, the strategy seeks to generate a workforce of more than 500,000 skilled IT workers over the next five years.
- IT Rules, 2021
The Information Technology (Guidelines for Intermediaries and Digital Media Ethics Code) Rules, 2021 were established by the Ministry of Electronics and Information Technology on February 25, 2021, replacing the IT Rules, 2011. A little more than a year later, on June 6, 2022, the Indian Ministry of Electronics and IT (MeitY) released the revised proposed modifications to the IT Act, which aim to make it better and meet the demands of the rapidly evolving digital world.
In addition to imposing more due diligence on companies, the proposed changes seek to empower regular users of digital platforms to demand responsibility and seek redress for their complaints when their rights are violated.
- Reserve Bank of India Amendment Bill, 2018
In 2018, the Reserve Bank of India unveiled the Reserve Bank of India Amendment Bill, 2018 which outlines cybersecurity policies and framework for urban co-operative banks. This bill mandates the bank to create and present their cyber crises management plans and also for better respond to cyberattacks, mandate that banks adopt mandatory breach notifications, wherein urban co-operative banks must quickly identify and notify RBI of cybersecurity breaches within two to six hours of discovery. It urges banks to plan threat assessment audits on a regular basis.
- Digital Personal Data Protection Act, 2023
The Digital Personal Data Protection Act of 2023 aims to safeguard the people’s digital personal data and give them control over their data. The act also governs the handling of the digital personal data in the country, it includes the data that has been digitalised after being collected online or offline. It applies to the overseas companies that process the personal data of the citizens of the country while providing them with goods and services.
NEED FOR CYBERSECURITY COMPLIANCE
- Protection of data and data privacy-
The companies have vast information and confidential details which includes the information of the customers, financial information or any such information that is secretive to the company. By complying with cybersecurity norms, it ensures that the data is protected against unauthorized access.
Financial Security
By implementing the cybersecurity standards, it mitigates the risk of financial fraud and protect them from financial loss.
- Management of Company’s Reputation-
By the compliance of cybersecurity norms or standards, it ensures the company’s brand credibility by taking proactive protective measures.
- Operational Disruption-
Compliance with cybersecurity can protect operational disruption caused by cyber-attacks which halt the productivity and slow down the business operations.
- Trust of the Consumers–
The trust of the customer is based on the company’s efficiency and credibility of the brand. A good compliance with the cybersecurity norms protects the business and gains consumers’ trust.
CYBERSECURITY REGULATING BODIES
- Computer Emergency Response Team-
It is the national nodal organization for gathering, evaluating, predicting, and sharing non-critical cybersecurity events is the Computer Emergency Response Team (CERT-In). It was formally established in 2004.
- Telecom Regulatory Authority of India (TRAI) & Department of Telecommunication-
Regulations pertaining to user data privacy and usage have been strengthened by the Department of Telecommunication (DoT) and the Telecom Regulatory Authority of India. In India, DoT is a distinct executive division of the Ministry of Communications, whereas TRAI is a regulatory agency. Both collaborate to control and regulate phone operators and service providers, even though TRAI has been given more regulatory authority.
- Security and Exchange Board of India-
The Securities and Exchange Board of India, or SEBI, was founded in 1988 and is the Ministry of Finance’s regulatory agency for the country’s commodities and securities markets. The SEBI Act of January 1992 grants it legislative authority to function as an executive government body. In addition to protecting their data, client data, and transactions, SEBI makes ensuring that the requirements of investors, market intermediaries, and securities issuers are satisfied.
- Cyber Regulation Appellate Tribunal-
The Cyber Regulation Appellate Tribunal was formed under the Information Technology Act of 2000. It is an appellate body and has the ability to exercise its appellate jurisdiction over the judgement or an order.
Cybersecurity compliance is not a choice but a strategic imperative for business organizations to protect assets, ensure legal compliance, and retain customer confidence. By embracing strong cybersecurity standards, companies can reduce risks and preserve their image in the digital world.
Author:–Tanya Saxena, in case of any queries please contact/write back to us at support@ipandlegalfilings.com or IP & Legal Filing.
