This week in Indian law: India enacted the Digital Personal Data Protection Act 2023, completing a seven-year legislative journey. Parliament passed the Mediation Act 2023, creating India's first standalone ADR framework. The RBI mandated a 10% incremental CRR to absorb surplus liquidity. The Monsoon Session concluded on August 11 as one of the most legislatively productive sessions in recent Parliamentary history. 10 significant legal developments this week across technology law, legislative policy, and regulatory updates.
Top story
India Enacts Digital Personal Data Protection Act After 7-Year Journey
Category: technology-law | Date: 11 August 2023 | Source: MeitY
The Digital Personal Data Protection Act 2023 (Act No. 22 of 2023) received Presidential assent on August 11, completing India's seven-year journey towards a comprehensive data protection law. The Act establishes a consent-based framework for processing personal data, creates the Data Protection Board of India, and imposes penalties up to Rs 250 crore for violations. The legislative journey began with the Justice B.N. Srikrishna Committee's recommendations in 2018, followed by multiple iterations of the Bill.
Why it matters: Every organisation processing personal data in India must now prepare for compliance when the Act's provisions are notified. The consent framework, data fiduciary obligations, cross-border data transfer provisions, and the creation of the Data Protection Board will fundamentally reshape India's digital economy governance. Practitioners across technology, corporate, and regulatory law should begin advising clients on compliance readiness.
Read more: Veritect analysis
Legislative and policy developments
Parliament Passes India's First Standalone Mediation Act 2023
Date: 7 August 2023 | Source: PRS India
Parliament passed the Mediation Act 2023, establishing India's first comprehensive standalone framework for mediation as an alternative dispute resolution mechanism. The Act provides for pre-litigation mediation, registration and recognition of mediators, establishment of the Mediation Council of India, and enforceability of mediated settlement agreements. The Act was one of four landmark legislations passed during the Monsoon Session.
Key point: The Mediation Act 2023 creates a complete institutional infrastructure for mediation in India, including mandatory pre-litigation mediation in certain cases. Litigation practitioners should prepare for mediation referrals becoming standard pre-suit requirements in commercial disputes.
Monsoon Session Concludes as Most Productive in Years
Date: 11 August 2023
The Monsoon Session of Parliament concluded on August 11, 2023, having enacted landmark legislation including the DPDP Act, NCT Delhi Amendment Act, Jan Vishwas Act, and Mediation Act. The session also saw the introduction and passage of the Digital Personal Data Protection Bill in both Houses within a single week.
Key point: Four landmark Acts in a single session marks an unusually productive legislative period that will reshape data privacy, governance in Delhi, business compliance, and dispute resolution in India.
Regulatory updates
RBI Mandates 10% Incremental CRR to Absorb Surplus Liquidity
Regulator: RBI | Date: 10 August 2023
The Reserve Bank of India mandated a 10% incremental cash reserve requirement (I-CRR) on the increase in net demand and time liabilities between 19 May 2023 and 28 July 2023. The measure was directed at absorbing the surplus liquidity generated by the withdrawal of Rs 2,000 denomination banknotes from circulation. The I-CRR was intended as a temporary measure to manage liquidity conditions.
Key point: The I-CRR temporarily reduced bank lending capacity by absorbing approximately Rs 1.1 lakh crore from the banking system. Banks and NBFCs adjusted their liquidity planning and lending strategies accordingly.
Also this week
- Rs 250 crore maximum penalty under DPDP Act — The Act establishes graded penalties with the maximum penalty of Rs 250 crore for repeated or egregious data protection violations by data fiduciaries.
- Mediation Council of India — The Mediation Act creates a new regulatory body to oversee mediator registration, training standards, and institutional mediation in India.
- Jan Vishwas Act notified — The Jan Vishwas Act received assent, with 183 offences across 42 laws decriminalised and converted to civil penalties.
- SC continues Manipur monitoring — The Supreme Court continued receiving reports from the Justice Gita Mittal monitoring committee on the Manipur violence situation.
By the numbers
- Rs 250 crore — Maximum penalty under the DPDP Act 2023 for data protection violations
- 7 years — Duration of India's data protection legislative journey (2017 Puttaswamy to 2023 DPDP Act)
- 4 — Landmark Acts enacted during the 2023 Monsoon Session (DPDP, NCT Delhi, Jan Vishwas, Mediation)
- 10% — Incremental CRR imposed by RBI to absorb surplus liquidity
Looking ahead
- August 15: Independence Day — no court or Parliamentary activity
- August 18: RBI expected to issue significant regulatory circulars post-MPC
- September 5: Article 370 Constitution Bench hearing expected to conclude
- September 18: Special Session of Parliament announced
This is the Veritect Weekly Legal Roundup for Week 32 of 2023. For daily updates, visit our legal news page. Subscribe to receive this roundup every Monday morning.
Veritect provides this content for informational purposes and does not constitute legal advice.