INDIA BUSINESS WORLD - OCTOBER 2005
THE MONTH THAT WAS

GOVT TO DELETE UMBRELLA PROVISIONS UNDER IT ACT

Business process outsourcing (BPO) units in the country can now relax. Vague and umbrella provisions under the Information Technology Act 2000 are to be replaced by clear and periodic security procedures to be spelt out by the department of information technology (DIT). Simultaneously, other government departments, like the finance and health ministries, are coming out with specific laws to govern credit cards and health records.

It may be recalled that most security breaches revolve around credit card information being leaked out. Precautions are being taken to guard against similar seepage of vital health-related information. The amended IT Act will, however, make room for a statutory framework to protect critical information infrastructure of the country.
DIT secretary Brijesh Kumar said that the proposed amendments to the IT Act would be finalised soon and sent to the Union Cabinet for approval. He said the government would place reasonable security procedures to be followed by the BPO units in consultation with self-regulatory bodies of the industry and experts. These procedural norms would be notified as and when changes were called for and would be as good as law, provided there was no specific law under which the breach could be dealt with.
Mishra revealed that the government was framing some standalone legislations that would deal with crime and security breaches involving credit cards. "Health information systems in hospitals, labs and outsourcing centres are also cause for concern and a separate law is being worked out by the related ministry to monitor them," he added.

According to Mishra, the IT Act will be amended so as to facilitate IT usage and encourage ecommerce. While Section 79 of the Act is being amended to provide immunity to intermediaries like BPOs, telecom service providers, Internet service providers and cyber cafes; it would also guard against tampering of evidence.