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CS Professional · Environmental, Social and Governance (ESG) - Principles and Practice · Data Governance

Veda Textiles Ltd, a listed company, asks its company secretary who has the power to prescribe the modes or methods of encryption that companies should use for secure electronic communication under the Information Technology Act, 2000. What is the correct answer?

The Central Government has the power to prescribe modes or methods for encryption under Section 84A of the Information Technology Act, 2000. The power exists for secure use of the electronic medium and for promoting e-governance and e-commerce. Companies and regulators do not prescribe these statutory modes themselves.

  1. AThe Central Government, under Section 84ACorrect
  2. BThe board of directors of each company, under its own data policy
  3. CThe Controller of Certifying Authorities, by issuing licences
  4. DThe adjudicating officer, while holding an inquiry into contraventions

Explanation

Section 84A says the Central Government may prescribe the modes or methods for encryption. A company board cannot prescribe statutory modes, and the Controller and adjudicating officer have other functions under the Act.

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