The Data Protection Bill is all about ensuring that the confidential details of clients are appropriately protected. The issue mainly came into light with two sets of companies operating in India. Firstly, there are the credit and debit card franchises globally like Visa and MasterCard who have custody of the data of credit card and debit card holders across the world. Second, is the case of companies like Flipkart (now owned by Wal-Mart) and Amazon that have data of millions of customers across India and other parts of the world.

The Data Protection Bill is all about protecting the confidentiality of this data. In the last few years we have seen data breach in the case of major companies like Facebook and Yahoo and that has set the cat among the pigeons. As a result, the Indian government had expressed apprehensions about the processing and storage of data pertaining to Indian clients. The Data Protection Bill is likely to allow these foreign companies to process Indian data abroad but will insist that the storage of such data should only be within the geography of India and such data cannot be stored elsewhere. This is one of the points against which the US has been lobbying with Indian authorities.