Rule 5: Processing of personal data for provision or issue of subsidy, benefit, service, certificate, licence or permit by State and its instrumentalities

Rule 5 sets the rules for how the government and its agencies process the personal data of a Data Principal (the individual to whom the data relates) when providing subsidies, benefits, services, certificates, licences, or permits. Any processing of personal data for these purposes must follow the specific standards laid out in the Second Schedule of the rules.\n\nThe rule defines exactly what it means when these government benefits or documents are issued under law, under policy, or using public funds. If something is issued under law, it means the State or its agencies are acting under a current legal power or function. If it is issued under policy, it means it is based on an executive policy or instruction from the Central Government or a State Government.\n\nFinally, the rule explains what using public funds means. For the Central Government or a State Government, this involves spending from or receiving money into the Consolidated Fund or public accounts of India or the State. For local or other government-controlled authorities, it refers to the specific funds belonging to those authorities.

Key points

• Processing a Data Principal's personal data for government subsidies, benefits, or permits must follow the standards in the Second Schedule. [(1)]
• Providing a benefit under law means the State or its agencies are exercising a power or function under a current law. [(2)(a)]
• Providing a benefit under policy means it is issued under an executive policy or instruction from the Central Government or a State Government. [(2)(b)]
• Providing a benefit using public funds means the money comes from or goes to the Consolidated Fund or public accounts of the Central or State Government. [(2)(c)(i)]
• For local authorities, using public funds refers to the specific funds of that authority. [(2)(c)(ii)]

Common misreadings

• Using public funds does not just mean Central or State Government funds; it also includes the specific funds of local or other government-controlled authorities.
• This rule does not contain the actual processing standards itself, but strictly requires following the standards specified in the Second Schedule.