Rule 5: Processing for Subsidy, Benefit, Service, Licence or Permit by the State
Rule 5 allows the State and its instrumentalities to process personal data when it is necessary for delivering subsidies, benefits, services, licences, or permits to individuals. This provision ensures that government functions which rely on personal data can continue without interruption, while still being subject to safeguards.
Under this rule:
- Personal data may be processed without explicit consent of the Data Principal when it is required to provide government subsidies, benefits, or services for which the individual has voluntarily applied.
- The processing must be limited to what is necessary for delivering the service or benefit, and cannot extend to unrelated uses.
- Adequate standards of security and accountability must be followed while handling such data.
Example Scenarios
When a farmer named Narayan applies for a government crop insurance scheme, the State can collect and process his Aadhaar number, land ownership records, and bank account details to verify eligibility and transfer benefits directly into his account.
If ABC Pharma Ltd. is applying for a licence to distribute medicines, the regulator may process the company’s registration details, tax records, and background checks of key employees, without needing additional consent each time.
For example, the regulator would be the Central Drugs Standard Control Organization (CDSCO) under the Ministry of Health and Family Welfare.
When a citizen applies for a driving licence, the transport authority may process fingerprints, photographs, and proof of residence as part of the application, since such processing is essential to deliver the service.
The objective of Rule 5 is to strike a balance between efficient governance and data protection. It ensures that individuals can continue to receive welfare schemes, licences, and essential services without unnecessary delays caused by repeated consent requirements, while holding the State accountable for protecting that data.