[Answered] What is Virtual Private Network (VPN)? Highlight the implications of India’s new VPN rules.

A virtual private network, or VPN, is an encrypted connection over the Internet from a device to a network. The encrypted connection helps ensure that sensitive data is safely transmitted. It prevents unauthorized people from eavesdropping on the traffic and allows the user to conduct work remotely.  VPN technology is widely used in corporate environments.

Converting one physical server into multiple virtual servers allows organizations to use processing power and resources more efficiently. Virtualization also reduces costs as maintaining a virtual server infrastructure is low compared to a physical server infrastructure. Virtual servers are also said to offer higher security than a physical server infrastructure.

India’s cybersecurity agency passed a rule mandating Virtual Private Network (VPN) providers to record and keeps their customers’ logs for 180 days. It also asked these firms to collect and store customer data for up to five years. It further mandated that any cybercrime recorded must be reported to the CERT-In within six hours of the crime. Implications of India’s new VPN rules are:

• It will help to trace anti-social elements and cybercriminals indulging in various heinous activities online.
• Money laundering will become tough: It will also shut door for money laundering as with the rise in digital banking, VPNs were playing a big role in opening rooms to such illegal activities.
• Bank frauds will dip: The regulations will bring in much needed accountability and stability in the banking sector, as fraudsters and scammers will not be able to hide behind the mask of a VPN.
• Surveillance and loss of privacy: The rules wrongly presume that those seeking anonymity have something to hide. VPN Rules could potentially violate the Right to Privacy” of the customers, as enumerated under Article 21.
• VPN suppliers leaving India is not good for its growing IT sector.
• Collecting excessive amounts of data within Indian jurisdiction without robust protection mechanisms could lead to even more breaches.

The security of a few internet users should not come at the cost of the privacy of the rest. Government should implement a robust data protection mechanism before introducing rules that mandate the collection of personal data by the service providers.