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Artificial Intelligence, Data Analytics and Cyber Security - Laws and Practice · Cyber Crimes and Investigation Procedures

Section 16 IT Act: Security Procedures and Practices

Updated 11 October 2026 · Fact-checked

Section 16 of the IT Act, 2000 lets the Central Government prescribe the security procedures and practices for sections 14 and 15, which deal with secure electronic records and secure electronic signatures. While prescribing them, it must have regard to commercial circumstances, the nature of transactions and other related factors it considers appropriate.

Understand Security Procedures and Practices (Section 16)

Section 16 is a short enabling provision. It does not list the security measures itself. It gives the Central Government the power to prescribe them.

The power is tied to two other sections. Section 14 deals with a secure electronic record. Section 15 deals with a secure electronic signature. The text of section 15 is not supplied in the official extract for this page, so learn it from your study material. Section 16 says the Central Government may prescribe the security procedures and practices "for the purposes of sections 14 and 15".

Start with section 14. If a security procedure has been applied to an electronic record at a specific point of time, the record is deemed to be a secure electronic record. This holds from that point of time to the time of verification. So the status starts when the procedure is applied, and it runs until the record is verified.

Now the proviso, which examiners like. In prescribing the procedures and practices, the Central Government shall have regard to the commercial circumstances, nature of transactions and such other related factors as it considers appropriate. So the standard is not one fixed level for every case. A small routine transaction and a high-value contract can attract different expectations.

Read section 16 with related provisions. Section 87(2)(ea) lists the security procedures and practices under section 16 as a matter on which the Central Government may make rules. Section 87(1) says rules are made by notification in the Official Gazette and in the Electronic Gazette. Do not confuse section 16 with section 43A, which is about compensation when a body corporate is negligent in protecting sensitive personal data. Section 43A has its own idea of reasonable security practices.

Key rules to remember

Section 16 power
Central Government may prescribe security procedures and practices for the purposes of sections 14 and 15
It is an enabling power ("may"). The detail comes from rules, not from section 16 itself.
Proviso to section 16
Regard to commercial circumstances + nature of transactions + other related factors considered appropriate
Write all three limbs in your answer. This shows that the standard is flexible.
Secure electronic record (section 14)
Security procedure applied at a specific point of time → record deemed secure from that point to the time of verification
The record is deemed secure for that period only.
Rule-making link (section 87)
Section 87(2)(ea): security procedures and practices under section 16
Rules are made by notification in the Official Gazette and in the Electronic Gazette under section 87(1). Rules are laid before each House of Parliament under section 87(3).
Section 43A contrast
Negligence in implementing and maintaining reasonable security practices + wrongful loss or gain → damages by way of compensation
Applies to a body corporate handling sensitive personal data. It is separate from section 16.

How to solve Security Procedures and Practices (Section 16) questions

Use this order for any question on section 16 or on secure records and signatures. It keeps your answer in the provision, analysis, conclusion format.

  1. 1Identify what is asked: the power under section 16, the meaning of a secure electronic record, or a fact-based problem on security procedures.
  2. 2State the provision in plain words: the Central Government may prescribe security procedures and practices for the purposes of sections 14 and 15.
  3. 3Add the proviso: regard to commercial circumstances, nature of transactions and other related factors.
  4. 4Link section 14 if records are involved: a security procedure applied at a specific point of time makes the record a secure electronic record until verification.
  5. 5Mention the rule-making route: section 87(2)(ea), with notification in the Official Gazette and in the Electronic Gazette.
  6. 6Apply to the facts. Check whether a prescribed procedure was applied, when it was applied, and whether the question is about verification.
  7. 7Conclude clearly. Say whether the record is deemed secure, or whether the matter falls under section 43A instead.
  8. 8Keep drafting or compliance points short: document the procedure applied, the date and time, and the verification record.

Quickest way: Three-line recall for section 16

When to use it: Use this when you have only a few minutes for a short-note or theory question.

  1. Line 1: Section 16 lets the Central Government prescribe security procedures and practices for sections 14 and 15.
  2. Line 2: It must have regard to commercial circumstances, nature of transactions and related factors.
  3. Line 3: Under section 14, a record on which a security procedure was applied is deemed secure from that time until verification; rules come under section 87(2)(ea).

Common mistakes in Security Procedures and Practices (Section 16)

  • Saying section 16 itself lists the security measures.

    The heading sounds like a code of practices.

    Fix: Say it is an enabling section. The Central Government prescribes the procedures through rules.

  • Leaving out the proviso on commercial circumstances and nature of transactions.

    Students remember the main power and skip the proviso.

    Fix: Always write the proviso as a separate sentence. It carries marks.

  • Mixing section 16 with section 43A.

    Both use the words security practices.

    Fix: Section 16 supports secure records and signatures. Section 43A gives compensation from a negligent body corporate handling sensitive personal data.

  • Saying a record is secure forever once a procedure is applied.

    The time limit in section 14 is overlooked.

    Fix: State that it is deemed secure from the specific point of time to the time of verification.

  • Saying section 16 applies only to electronic signatures.

    The word signature is stressed in the topic title.

    Fix: Section 16 covers the purposes of both section 14 (records) and section 15 (signatures).

Worked examples

Example 1

Explain the power of the Central Government under section 16 of the IT Act, 2000, and the factors it must consider.

Show the solution
  1. Provision: section 16 says the Central Government may, for the purposes of sections 14 and 15, prescribe the security procedures and practices.
  2. Link: section 14 deals with secure electronic records, and section 15 with secure electronic signatures.
  3. Proviso: while prescribing, the Central Government shall have regard to commercial circumstances, nature of transactions and such other related factors as it considers appropriate.
  4. Analysis: the word "may" makes it an enabling power. The standard can differ by type and value of transaction.
  5. Route: the rules are made under section 87(2)(ea) by notification in the Official Gazette and in the Electronic Gazette.

Answer: Under section 16 the Central Government may prescribe security procedures and practices for sections 14 and 15, and must have regard to commercial circumstances, nature of transactions and other related factors it considers appropriate.

Example 2

Asha Textiles Ltd applies a prescribed security procedure to a purchase order record at 10:00 am on 5 March. It is verified on 9 March. Is the record a secure electronic record, and for what period?

Show the solution
  1. Rule: under section 14, where a security procedure has been applied to an electronic record at a specific point of time, the record is deemed to be a secure electronic record from that time to the time of verification.
  2. Facts: the procedure was applied at 10:00 am on 5 March, and verification took place on 9 March.
  3. Application: the deemed status starts at 10:00 am on 5 March and runs until the time of verification on 9 March.
  4. Check: the procedure must be the one prescribed under section 16 rules. The facts say it was a prescribed procedure, so this is met.
  5. Drafting point: Asha Textiles Ltd should keep a log of the procedure applied, the time, and the verification.

Answer: Yes. The record is deemed a secure electronic record from 10:00 am on 5 March until verification on 9 March.

Exam tips

  • Write the proviso to section 16 in every answer on this section. It is the most testable part.
  • Always connect section 16 with sections 14 and 15. Use the exact phrase "for the purposes of sections 14 and 15".
  • In case-based questions, find the point of time when the procedure was applied and the time of verification.
  • Do not quote section 15 details beyond what you are sure of. Use your study material for it.
  • If a question is about data leaks by a company, check whether section 43A is the right answer instead.

Practice questions from Cyber Crimes and Investigation Procedures

Security Procedures and Practices (Section 16): frequently asked questions

What does section 16 of the IT Act, 2000 say?

It says the Central Government may prescribe security procedures and practices for the purposes of sections 14 and 15. It adds a proviso that the Government must have regard to commercial circumstances, nature of transactions and other related factors it considers appropriate.

What is a secure electronic record?

Under section 14, if a security procedure has been applied to an electronic record at a specific point of time, the record is deemed a secure electronic record. This lasts from that point of time to the time of verification.

How are the security procedures under section 16 prescribed?

They are prescribed by rules. Section 87(2)(ea) lists the security procedures and practices under section 16 as a rule-making matter. Under section 87(1), rules are made by notification in the Official Gazette and in the Electronic Gazette.

Is section 16 the same as reasonable security practices under section 43A?

No. Section 16 supports secure electronic records and signatures under sections 14 and 15. Section 43A makes a negligent body corporate liable to pay compensation when it fails to maintain reasonable security practices for sensitive personal data.