CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Data Governance
Kaveri Fintech Pvt Ltd's data governance committee is drafting an encryption policy. A member says Section 84A exists mainly to punish companies that store customer data without encryption. Based on the wording of Section 84A, how should the company secretary respond?
Section 84A is an enabling provision, not a penal one. It allows the Central Government to prescribe modes or methods for encryption for the secure use of the electronic medium and for promoting e-governance and e-commerce. It does not itself impose imprisonment or fines on companies that fail to encrypt.
- ACorrect, because Section 84A imposes imprisonment on non-encrypting companies
- BIncorrect, because Section 84A only empowers the Central Government to prescribe encryption modes or methods for secure electronic use and promotion of e-governance and e-commerceCorrect
- CCorrect, because Section 84A requires every company to appoint an encryption officer
- DIncorrect, because Section 84A applies only to government departments and not to companies
Explanation
Section 84A is an enabling provision. It lets the Central Government prescribe modes or methods for encryption and states no penalty. The option claiming it applies only to government departments adds a limit that the text does not contain.
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