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CS Professional · Banking and Insurance - Laws and Practice · Digital Banking

A private bank's cloud provider is called upon by a Government agency, authorised by the Central Government by gazette notification to enhance cyber security, to give technical assistance and online access to the computer resource storing traffic data. The provider knowingly refuses. Under Section 69B of the IT Act, 2000 (as currently amended), what is the exposure of the intermediary?

The intermediary faces imprisonment up to one year, or a fine up to one crore rupees, or both. Section 69B(4), as amended in 2023, replaced the earlier three years plus fine, so the old position is no longer correct.

  1. AImprisonment up to one year, or fine up to one crore rupees, or bothCorrect
  2. BImprisonment up to three years and also liable to fine
  3. COnly a civil penalty payable to the bank
  4. DLife imprisonment as for cyber terrorism

Explanation

Section 69B(4), as substituted in 2023, punishes an intermediary who intentionally or knowingly contravenes sub-section (2) with imprisonment up to one year or fine up to one crore rupees, or both. The older text of three years and fine is no longer current, so option B is wrong.

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