We are anonymous, we are legion

Investigating TLS blocking in India

Simone Basso, Gurshabad Grover and Kushagra Singh — 2020-07-09T01:23:43Z

A study into Transport Layer Security (TLS)-based blocking by three popular Indian ISPs: ACT Fibernet, Bharti Airtel and Reliance Jio.

Gurshabad Grover and Kushgra Singh collaborated with Simone Basso (OONI) to investigate TLS-based blocking in India. The research report was published on OONI's blog. It was edited and reviewed by Maria Xynou and Arturo Filastò.

Summary

This report investigates Transport Layer Security (TLS)-based blocking in India. Previous research by the Centre for Internet & Society, India (CIS) has already exposed TLS blocking based on the value of the SNI field. OONI has also implemented and started testing SNI-based TLS blocking measurements.

Recently, the Magma Project documented cases where CIS India and OONI’s methodologies could be improved. They specifically found that blocking sometimes appears to depend not only on the value of the SNI field but also on the address of the web server being used. These findings were later confirmed by OONI measurements in Spain and Iran through the use of an extended measurement methodology.

We were therefore curious to see whether such an extended methodology would discover further cases of TLS blocking in India. To answer this research question we ran experiments on the networks of three popular Indian Internet Service Providers (ISPs) (ACT Fibernet, Bharti Airtel, and Reliance Jio) which account for over 70% of the internet subscribers in India.

We recorded SNI-based blocking on both Bharti Airtel and Reliance Jio. We also discovered that Reliance Jio blocks TLS traffic not just based on the SNI value, but also on the web server involved with the TLS handshake. Moreover, we noticed that ACT Fibernet’s DNS resolver directs users towards servers owned by ACT Fibernet itself. Such servers caused the TLS handshake to fail, but the root cause of censorship was the DNS.

We also document that one of the endpoints we tested, collegehumor.com:443, does not allow establishing TCP connection from several vantage points and control measurements. Yet, in Reliance Jio, we see cases where the connections to such endpoints complete successfully and a timeout occurs during the TLS handshake. We believe this is caused by some kind of proxy that terminates the TCP connection and performs the TLS handshake.

Read the full research report on OONI's blog.

For more details visit https://cis-india.org/internet-governance/blog/investigating-tls-blocking-in-india

Towards Algorithmic Transparency

Radhika Radhakrishnan, and Amber Sinha — 2020-07-15T13:16:44Z

This policy brief examines the issue of transparency as a key ethical component in the development, deployment, and use of Artificial Intelligence.

This brief proposes a framework that seeks to overcome the challenges in preserving transparency when dealing with machine learning algorithms, and suggests solutions such as the incorporation of audits, and ex ante approaches to building interpretable models right from the design stage. Read the full report here.

The Regulatory Practices Lab at CIS aims to produce regulatory policy suggestions focused on India, but with global application, in an agile and targeted manner and to promote transparency around practices affecting digital rights.
The Regulatory Practices Lab is supported by Google and Facebook.

For more details visit https://cis-india.org/internet-governance/blog/towards-algorithmic-transparency

After the Lockdown

Shyam Ponappa — 2020-04-09T10:05:49Z

This post was first published in the Business Standard, on April 2, 2020.

This is a time when, as the authorities deal with a lockdown, there needs to be an equal emphasis on providing for large numbers of people without the money for food and necessities, while the rest of us wait it out. Hard as it is, an MIT scholar writes that after the Spanish flu in 1918, cities that restricted public gatherings sooner and longer had fewer fatalities, and emerged with stronger economic growth.1 It is likely that costs and benefits vary with economic and social capacity, and we may have a harder time with it here. Going forward, government action to help provide relief, rehabilitate people and deal with loss needs to be well planned, including targeting aid to the urban and displaced poor.2

As important now as to ensure the lockdown continues is to plan on how to revive productive activity and the economy, and restore public confidence. A systematic approach will likely yield better results.

A major element of the recovery plan is steps such as liberal credit and amortisation terms, perhaps much more than the three-month extension the Reserve Bank of India (RBI) has announced. A primary purpose is the re-initiation of large-scale activities such as construction, of which there are reportedly about 200,000 large projects around the country. These have to be nursed back to being going concerns. The RBI may need to consider doing more, including lowering rates.

An ominous development that has grown as the economy slowed is financial stress that could swell non-performing assets (NPAs). At the half-year ending September 2019, about half of non-financial large corporations in India, excluding telecom, showed financial stress (see table).

Source: Krishna Kant: "Coronavirus shutdown puts Rs 15-trillion debt at risk, to impact finances", BS, March 30, 2020:

https://www.business-standard.com/article/markets/coronavirus-shutdown-puts-rs-15-trillion-debt-at-risk-to-impact-finances-120032901036_1.html

These include some of India’s largest companies, producing power, steel, and chemicals. The 201 companies have total debt of nearly Rs 15 trillion, more than half of all borrowings. There is also the debt overhang of the National Highways Authority of India, and of the telecom companies. Ironically, the telecom companies are our lifeline now, despite having nearly collapsed under debt because of ill-advised policies in the past, which have still not changed. Perhaps our obvious dependence telecom services now will spark well conceived, convergent policies for this sector, so that we can function effectively.

A start with immediate changes in administrative rules for 60GHz, 70-80GHz, and 500-700MHz wireless use, modelled on the US FCC regulations as was done for the 5GHz Wi-Fi in October 2018, could change the game. It will provide the opportunity in India for the innovation of devices, their production, and use, possibly unleashing this sector. This can help offset our reliance on imported technology and equipment. However, such changes in policies and purchasing support have eluded us thus far. Now, the only way our high-technology manufacturers can thrive is to succeed internationally, in order to be able to sell to the domestic market. Imagine how hard that might be, and you begin to get an inkling of why we have few domestic product champions, struggling against odds in areas such as optical switches, networking equipment, and wireless devices. For order-of-magnitude change, however, structural changes need to be worked out in consultation with operators in the organisation of services through shared infrastructure.

For the longer term, a fundamental reconsideration for allocating resources is needed through coherent, orchestrated policy planning and support. What the government can do as a primary responsibility, besides ensuring law and order and security, is to develop our inadequate and unreliable infrastructure, including facilities and services that enable efficient production clusters, their integrated functioning, and skilling. For instance, Apple’s recent decision against moving iPhone production from China to India was reportedly because similar large facilities (factories of 250,000) are not feasible here, and second, our logistics are inadequate. Such considerations should be factored into our planning, although Apple may well have to revisit the very sustainability of the concept of outsize facilities that require the sort of repressive conditions prevailing in China. However, we need not aim for building unsustainable mega-factories. Instead, a more practical approach may be to plan for building agglomerations of smaller, sustainable units, that can aggregate their activity and output effectively and efficiently. Such developments could form the basis of numerous viable clusters, and where possible, capitalise on existing incipient clusters of activities. Such infrastructure needs to be extended to the countryside for agriculture and allied activities as well, so that productivity increases with a change from rain-fed, extensive cultivation to intensive practices, with more controlled conditions.

The automotive industry, the largest employer in manufacturing, provides an example for other sectors. It was a success story like telecom until recently, but is now floundering, partly because of inappropriate policies, despite its systematic efforts at incorporating collaborative planning and working with the government. It has achieved the remarkable transformation of moving from BS-IV to BS-VI emission regulations in just three years, upgrading by two levels with an investment of Rs 70,000 crore, whereas European companies have taken five to six years to upgrade by one level. This has meant that there was no time for local sourcing, and therefore heavy reliance on global suppliers, including China. While the collaborative planning model adopted by the industry provides a model for other sectors, the question here is, what now. In a sense, it was not just the radical change in market demand with the advent of ridesharing and e-vehicles, but also the government’s approach to policies and taxation that aggravated its difficulties.

Going forward, policies that are more congruent in terms of societal goals, including employment that support the development of large manufacturing opportunities, need to be thought through from a perspective of aligning and integrating objectives (in this case, transportation). Areas such as automotive and other industries for the manufacture of road and rail transport vehicles need to be considered from the perspective of reconfiguring the purpose, flow, and value-added, to achieve both low-cost, accessible mass transport, and vehicles for private use that complement transportation objectives as also employment and welfare.

Systematic and convergent planning and implementation across sectors could help achieve a better revival.

Shyam (no space) Ponappa at gmail dot com

1: https://www.reuters.com/article/us-health-coronavirus-usa-reopen-analysi/the-u-s-weighs-the-grim-math-of-death-vs-the-economy-idUSKBN21H1B4

2: https://www.financialexpress.com/opinion/the-coronavirus-lockdown-and-indias-urban-vulnerables/1915316/

For more details visit https://cis-india.org/internet-governance/blog/after-the-lockdown

India’s ‘Self-Goal’ in Telecom

Shyam Ponappa — 2020-04-09T07:18:26Z

This post was first published in the Business Standard, on March 5, 2020.

The government apparently cannot resolve the problems in telecommunications. Why? Because the authorities are trying to balance the Supreme Court order on Adjusted Gross Revenue (AGR), with keeping the telecom sector healthy, while safeguarding consumer interest. These irreconcilable differences have arisen because both the United Progressive Alliance and the National Democratic Alliance governments prosecuted unreasonable claims for 15 years, despite adverse rulings! This imagined “impossible trinity” is an entirely self-created conflation.
If only the authorities focused on what they can do for India’s real needs instead of tilting at windmills, we’d fare better. Now, we are close to a collapse in communications that would impede many sectors, compound the problem of non-performing assets (NPAs), demoralise bankers, increase unemployment, and reduce investment, adding to our economic and social problems.
Is resolving the telecom crisis central to the public interest? Yes, because people need good infrastructure to use time, money, material, and mindshare effectively and efficiently, with minimal degradation of their environment, whether for productive purposes or for leisure. Systems that deliver water, sanitation, energy, transport and communications support all these activities. Nothing matches the transformation brought about by communications in India from 2004 to 2011 in our complex socio-economic terrain and demography. Its potential is still vast, limited only by our imagination and capacity for convergent action. Yet, the government’s dysfunctional approach to communications is in stark contrast to the constructive approach to make rail operations viable for private operators.
India’s interests are best served if people get the services they need for productivity and wellbeing with ease, at reasonable prices. This is why it is important for government and people to understand and work towards establishing good infrastructure.

What the Government Can Do

An absolute prerequisite is for all branches of government (legislative, executive, and judicial), the press and media, and society, to recognise that all of us must strive together to conceptualise and achieve good infrastructure. It is not “somebody else’s job”, and certainly not just the Department of Telecommunications’ (DoT’s). The latter cannot do it alone, or even take the lead, because the steps required far exceed its ambit.

Act Quickly

These actions are needed immediately:

First, annul the AGR demand using whatever legal means are available. For instance, the operators could file an appeal, and the government could settle out of court, renouncing the suit, accepting the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruling of 2015 on AGR.

Second, issue an appropriate ordinance that rescinds all extended claims. Follow up with the requisite legislation, working across political lines for consensus in the national interest.

Third, take action to organise and deliver communications services effectively and efficiently to as many people as possible. The following steps will help build and maintain more extensive networks with good services, reasonable prices, and more government revenues.

Enable Spectrum Usage on Feasible Terms

Wireless regulations

It is infeasible for fibre or cable to reach most people in India, compared with wireless alternatives. Realistically, the extension of connectivity beyond the nearest fibre termination point is through wireless middle-mile connections, and Wi-Fi for most last-mile links. The technology is available, and administrative decisions together with appropriate legislation can enable the use of spectrum immediately in 60GHz, 70-80GHz, and below 700MHz bands to be used by authorised operators for wireless connectivity. The first two bands are useful for high-capacity short and medium distance hops, while the third is for up to 10 km hops. The DoT can follow its own precedent set in October 2018 for 5GHz for Wi-Fi, i.e., use the US Federal Communications Commission regulations as a model.1 The one change needed is an adaptation to our circumstances that restricts their use to authorised operators for the middle-mile instead of open access, because of the spectrum payments made by operators. Policies in the public interest allowing spectrum use without auctions do not contravene Supreme Court orders.

Policies: Revenue sharing for spectrum

A second requirement is for all licensed spectrum to be paid for as a share of revenues based on usage as for licence fees, in lieu of auction payments. Legislation to this effect can ensure that spectrum for communications is either paid through revenue sharing for actual use, or is open access for all Wi-Fi bands. The restricted middle-mile use mentioned above can be charged at minimal administrative costs for management through geo-location databases to avoid interference. In the past, revenue-sharing has earned much more than up-front fees in India, and rejuvenated communications.2 There are two additional reasons for revenue sharing. One is the need to manufacture a significant proportion of equipment with Indian IPR or value-added, to not have to rely as much as we do on imports. This is critical for achieving a better balance-of-payments, and for strategic considerations. The second is to enable local talent to design and develop solutions for devices for local as well as global markets, which is denied because it is virtually impossible for them to access spectrum, no matter what the stated policies might claim.

Policies and Organisation for Infrastructure Sharing

Further, the government needs to actively facilitate shared infrastructure with policies and legislation. One way is through consortiums for network development and management, charging for usage by authorised operators. At least two consortiums that provide access for a fee, with government’s minority participation in both for security and the public interest, can ensure competition for quality and pricing. Authorised service providers could pay according to usage.
Press reports of a consortium approach to 5G where operators pay as before and the government “contributes” spectrum reflect seriously flawed thinking.3 Such extractive payments with no funds left for network development and service provision only support an illusion that genuine efforts are being made to the ill-informed, who simultaneously rejoice in the idea of free services while acclaiming high government charges (the two are obviously not compatible).
Instead of tilting at windmills that do not serve people’s needs while beggaring their prospects, commitment to our collective interests requires implementing what can be done with competence and integrity.

Shyam (no space) Ponappa at gmail dot com
1. https://dot.gov.in/sites/default/files/2018_10_29%20DCC.pdf
2. http://organizing-india.blogspot.in/2016/04/ breakthroughs- needed-for-digital-india.html
3. https://www.business-standard.com/article/economy-policy/govt-considering-spv-with-5g-sweetener-as-solution-to-telecom-crisis-120012300302_1.html

For more details visit https://cis-india.org/internet-governance/indias-self-goal-in-telecom

‘Future of Work’ in India’s IT/IT-es Sector

Aayush Rathi and Elonnai Hickok — 2020-04-28T09:52:59Z

The Centre for Internet and Society has recently undertaken research into the impact of Industry 4.0 on work in India. Industry 4.0, for the purposes of the research, is conceptualised as the technical integration of cyber physical systems (CPS) into production and logistics and the use of the ‘internet of things’ (connection between everyday objects) and services in (industrial) processes. By undertaking this research, CIS seeks to complement and contribute to the discourse and debates in India around the impact of Industry 4.0. In furtherance of the same, this report seeks to explore several key themes underpinning the impact of Industry 4.0 specifically in the IT/IT-es sector and broadly on the nature of work itself.

Read the complete case-study here: Download (PDF)

Introduction

Scholarship on 'Industry 4.0' that has emerged globally has sought to address the challenges of technological forecasting as it relates to work in varied forms. For instance, the Frey-Osborne methods examine characteristic tasks of each occupation and suggest that almost half of all jobs in the United States and other advanced countries are at risk of being substituted by computers or algorithms within the next 10 to 20 years. [1] On the other hand, scholars such as Autor and Handel as well as research produced by OECD on this subject argue that occupations as a whole are unlikely to be automated as there is great variability in the tasks within each occupation. [2] Existing literature on the impact on jobs in the IT sector in India too have arrived at mixed conclusions. Reports have raised concerns about job loss in the sector as a result of automation [3] whilst it has also been reported that employment from the IT sector reached 3.86 million in 2016-17 and an addition of around 105,000 was witnessed in FY18 itself. [4]

In this context, it is crucial to start by developing an understanding of which technologies are at the forefront of bringing in Industry 4.0. Such an understanding will further help understand which jobs, and more specifically, job functions are at the greatest risk of being replaced by automation technologies. To further contextualise the impact, it is imperative to develop a comprehensive understanding of how job functions are organised within the sector itself. This becomes especially relevant with the emphasis Industry 4.0 places on the horizontal and vertical integration of the various technologies constituting Industry 4.0. [5]

It is anticipated that to stay ahead of the curve of ‘technological unemployment’ there will be significant skilling and re-skilling challenges to enable new talent addition around emerging job roles. [6] The skilling challenge gains enhanced importance in the broader context of nurturing an inclusive digital economy. [7] This is particularly relevant in the context of female labour force participation, since it has been predicted that job creation will be concentrated in sectors where females are underrepresented and difficult to retain, while sectors with higher female participation, such as secretarial work, will undergo job loss. [8]

However, it is not clear how these trends will play out in the future, particularly because other structural changes are taking place simultaneously (such as globalisation and protectionism, demographic change, policy making, technological adoption etc.).

Objective and Scope

This research seeks to contribute to existing studies and dialogue on the impact and effect of industry 4.0 on work in the Information Technology services (IT) sector in India. Though the research focuses on the impact of technologies that comprise Industry 4.0, such technologies are frequently interchanged with the words ‘automation’ and ‘digitisation’. Thus, the desk research also examines the impact of ‘automation’ and ‘digitisation’ on the IT sector in India. The case study looks atthe IT sector broadly and where applicable, calls out information specific to sub-sectors such as IT enabled services (IT-eS) or Business Process Management (IT-BPM). The IT sector in India is uniquely placed; it is producing the technologies that are disrupting work in other industries as well as implementing them internally. This report focuses on the latter, but brings into context the former when relevant to work in the sector.

By drawing out trends and providing an analysis of contextual, quantitative and qualitative data on changes to work and labour markets in India as a result of technological uptake, it is anticipated that comparative research can be enabled by creating a framework that can be replicated in other, particularly developing, contexts.

References

[1] Carl Benedikt Frey and Michael A. Osborne, 2013. The future of employment: How susceptible are jobs to computerisation?, Oxford Martin School, September.

[2] See David H. Autor & Michael J. Handel, 2013. “Putting Tasks to the Test: Human Capital, Job Tasks, and Wages,” Journal of Labor Economics, University of Chicago Press, Vol. 31(S1), pages S59 -S96. See also: Future of Work and Skills, The Organisation for Economic Co-operation and Development, February 2017.

[3] Business Today, AI, automation will cost 7 lakh IT jobs by 2022, says report. (November 7, 2017) Retrieved https://www.businesstoday.in/sectors/it/ai-and-automation-to-cost-7-lakh-it-jobs-by-2022-says-report/story/259880.html

[4] Advantage India, India Brand Equity Foundation. Retrieved https://www.ibef.org/download/IT-ITeS-Report-Apr-2018.pdf

[5] Embracing Industry 4.0 -and Rediscovering Growth, Boston Consulting Group. Retrieved https://www.bcg.com/capabilities/operations/embracing-industry-4.0-rediscovering-growth.aspx

[6] India’s Readiness for Industry 4.0 -A Focus on Automotive Sector, Grant Thorton and Confederation of Indian Industry. Retrieved http://www.nasscom.in/sites/default/files/NASSCOM_Annual_Guidance_Final_22062017.pdf

[7] G20 Insights, Bridging the digital divide: Skills for the new age., Retrieved http://www.g20-insights.org/policy_briefs/bridging-digital-divide-skills-new-age/

[8] World Economic Forum, The Future of Jobs -Employment, Skills and Workforce Strategy for the Fourth Industrial Revolution, (January 2016).

For more details visit https://cis-india.org/internet-governance/blog/future-of-work-in-india-it-it-es-sector

RBI Ban on Cryptocurrencies not backed by any data or statistics

vipul — 2020-03-05T18:35:48Z

In March 2020, the Supreme Court of India quashed the RBI order passed in 2018 that banned financial services firms from trading in virtual currency or cryptocurrency. Keeping this policy window in mind, the Centre for Internet & Society will be releasing a series of blog posts and policy briefs on cryptocurrency regulation in India

On April 6, 2018 the RBI issued a circular preventing all Commercial and Co-operative Banks, Payments Banks, Small Finance Banks, NBFCs, and Payment System Providers not only from dealing in virtual currencies themselves but also directing them to stop providing services to all entities which deal with virtual currencies. The RBI had issued a Press Release cautioning the public against dealing in virtual currencies including Bitcoin in 2013. However, the growing popularity of cryptocurrencies and its adoption by large numbers of Indian users, may have been the reason which forced the RBI to issue another Press Release in February 2017 reiterating its earlier concerns regarding cryptocurrencies raised in its earlier circular of 2013. In December 2017 both the RBI as well as the Ministry of Finance issued Press Releases cautioning the general public about the dangers and risks associated with cryptocurrencies, finally culminating in the circular dated April 6, 2018 banning financial institutions from dealing with cryptocurrency traders. As a result of this circular the operations of cryptocurrency exchanges took a severe hit and the number of transactions on these exchanges reduced substantially. The cryptocurrency market in India all but disappeared with only a few extremely determined enthusiasts still dealing in cryptocurrencies, at the risk of potentially depriving themselves of banking services altogether.

The RBI circular was challenged in the Supreme Court by the Internet and Mobile Association of India; final arguments in the case were concluded only in the last week of January, 2020 with the judgment of the Supreme Court being awaited. Generally speaking, whenever such policy decisions of the executive branch are challenged in the courts, a well accepted defense for the executive authorities, specifically in highly complicated fields such as finance, etc. is that the decision was taken by an expert body using its expertise in the field. The basic rationale underlying this argument is that the authority has relied on verifiable data and used its expertise to analyse the same in order to arrive at its decision.

However, it appears from the response by the RBI to an RTI query by Centre for Internet and Society, that requested the RBI for a copy of all reports, papers, opinions and advice that was relied upon for issuing the April 6, 2018 circular, that the RBI has not relied upon any such data to come to a conclusion that banking services should be denied to all those entities dealing in cryptocurrencies. It appears from the response to the RTI query that it was the RBI’s own previous circulars and press releases which formed the basis for the April 6, 2018 circular. This response completely undermines the argument that the decision by the RBI was taken after an analysis of all the facts and statistics concerned with cryptocurrency trading.

Not only does the RTI response weaken the commonly accepted defense of an expert body making a well-reasoned decision, but it also strengthens another legal ground for challenging the decision of the RBI, viz. arbitrariness. One of the grounds on which executive decisions can be challenged is that the decision was made without taking into account relevant material and without the application of mind. The admission by the RBI in its RTI response that there is no material relied upon by the RBI, except its own previous Press Releases, only strengthens the argument that the decision was made in an arbitrary manner.

Such an admission by the RBI regarding the process followed before issuing the April 6, 2018 circular reduces the credibility of the decision itself. However it remains to be seen whether the Supreme Court of India agrees with the arguments of the petitioners challenging the April 6, 2018 circular, even though the petitioners may not have been able to produce this RTI response from the RBI to further bolster their case.

For more details visit https://cis-india.org/internet-governance/blog/rbi-ban-on-cryptocurrencies-not-backed-by-any-data-or-statistics

Cryptocurrency Regulation in India – A brief history

vipul — 2020-03-05T18:36:09Z

The story of cryptocurrencies started in 2008 when a paper titled “Bitcoin: A Peer to Peer Electronic Cash System” was published by a single or group of pseudonymous developer(s) by the name of Satoshi Nakamoto. The actual network took some time to start with the first transactions taking place only in January 2009. The first actual sale of an item using Bitcoin took place a year later with a user swapping 10,000 Bitcoin for two pizzas in 2010, which attached a cash value to the cryptocurrency for the first time. By 2011 other cryptocurrencies began to emerge, with Litecoin, Namecoin and Swiftcoin all making their debut. Meanwhile, Bitcoin the cryptocurrency that started it all started getting criticised after claims emerged that it was being used on the so-called “dark web”, particularly on sites such as Silk Road as a means of payment for illegal transactions. Over the next five years cryptocurrencies steadily gained traction with increased number of transactions and the price of Bitcoin, the most popular cryptocurrency shot up from around 5 Dollars in the beginning of 2012 to almost 1000 Dollars at the end of 2017.

Riding on the back of this wave of popularity, a number of cryptocurrency exchanges started operating in India between 2012 and 2017 providing much needed depth and volume to the Indian cryptocurrency market. These included popular exchanges such as Zebpay, Coinsecure, Unocoin, Koinex, Pocket Bits and Bitxoxo. With the price of cryptocurrencies shooting up and because of its increased popularity and adoption by users outside of its traditional cult following, regulators worldwide began to take notice of this new technology; in India the RBI issued a Press Release cautioning the public against dealing in virtual currencies including Bitcoin way back in 2013. However, the transaction volumes and adoption of cryptocurrencies in India really picked up in earnest only after the demonetisation of high value currency notes in November of 2016, with the government’s emphasis on digital payments leading to alternatives to traditional online banking such as cryptocurrencies forcing their way into the public consciousness. Indian cryptocurrency exchanges started acquiring users at a much higher pace which drove up volume for cryptocurrency transactions on all Indian exchanges. The growing popularity of cryptocurrencies and its adoption by large numbers of Indian users forced the RBI to issue another Press Release in February 2017 reiterating its concerns regarding cryptocurrencies raised in its earlier Press Release of 2013.

In October and November, 2017 two Public Interest Petitions were filed in the Supreme Court of India, one by Siddharth Dalmia and another by Dwaipayan Bhowmick, the former asking the Supreme Court to restrict the sale and purchase of cryptocurrencies in India, and the latter asking for cryptocurrencies in India to be regulated. Both the petitions are currently pending in the Supreme Court.

In November, 2017 the Government of India constituted a high level Inter-ministerial Committee under the chairmanship of Shri Subhash Chandra Garg, Secretary, Department of Economic Affairs, Ministry of Finance and comprising of Shri Ajay Prakash Sawhney (Secretary, Ministry of Electronics and Information Technology), Shri Ajay Tyagi (Chairman, Securities and Exchange Board of India) and Shri B.P. Kanungo (Deputy Governor, Reserve Bank of India). The mandate of the Committee was to study various issues pertaining to Virtual Currencies and to propose specific actions that may be taken in relation thereto. This Committee submitted its report in July of 2019 recommending a ban on private cryptocurrencies in India.

In December 2017 both the RBI as well as the Ministry of Finance issued Press releases cautioning the general public about the dangers and risks associated with cryptocurrencies, with the Ministry of Finance Press Release saying that cryptocurrencies are like ponzi schemes and also declaring that they are not currencies or coins. It should be mentioned here that till the end of March 2018, the RBI and the Finance Ministry had issued various Press Releases on cryptocurrencies cautioning people against their risks, however none of them ever took any legal action or gave any enforceable directions against cryptocurrencies. All of this changed with the RBI circular dated April 6, 2018 whereby the RBI prevented Commercial and Co-operative Banks, Payments Banks, Small Finance Banks, NBFCs, and Payment System Providers not only from dealing in virtual currencies themselves but also directing them to stop providing services to all entities which deal with virtual currencies.

The effect of the circular was that cryptocurrency exchanges, which relied on normal banking channels for sending and receiving money to and from their users, could not access any banking services within India. This essentially crippled their business operations since converting cash to cryptocurrencies and vice versa was an essential part of their operations. Even pure cryptocurrency exchanges which did not deal in fiat currency, were unable to carry out their regular operations such as paying for office space, staff salaries, server space, vendor payments, etc. without access to banking services.

As a the operations of cryptocurrency exchanges took a severe hit and the number of transactions on these exchanges reduced substantially. People who had bought cryptocurrencies on these exchanges as an investment were forced to sell their crypto assets and cash out before they lost access to banking facilities. The cryptocurrency exchanges themselves found it hard to sustain operations in the face of the dual hit of reduced transaction volumes and loss of access banking services. Faced with such an existential threat, a number of exchanges who were members of the Internet and Mobile Association of India (IMAI), filed a writ petition in the Supreme Court on May 15, 2018 titled Internet and Mobile Association of India v. Reserve Bank of India, the final arguments in which were heard by the Supreme Court of India in January, 2020 and the judgment is awaited. If the Supreme Court agrees with the arguments of the petitioners, then cryptocurrency exchanges would be able to restart operations in India; as a result the cryptocurrency ecosystem in India may be revived and cryptocurrencies may become a viable investment alternative again.

For more details visit https://cis-india.org/internet-governance/blog/cryptocurrency-regulation-in-india-2013-a-brief-history

A Compilation of Research on the PDP Bill

pranav — 2020-03-05T08:04:24Z

The most recent step in India’s initiative to create an effective and comprehensive Data Protection regime was the call for comments to the Personal Data Protection Bill, 2019, which closed last month. Leading up to the comments, CIS has published numerous research pieces with the goal of providing a comprehensive overview of how this legislation would place India within the global scheme, and how the local situation has developed, as well as analysing its impacts on citizens’ rights.

In addition to general and clause-by-clause comments and recommendations, we have compiled an annotated version of the Personal Data Protection Bill, which lays out our commentary in an easy-to-follow format.

Below, you can find our other recent research on Data Protection:

Pallavi Bedi has put together a note on the Divergence between EU’s General Data Protection Regulation (GDPR) and the Personal Data Protection Bill.

In addition, Pallavi has also contrasted the Personal Data Protection Bill with the GDPR and California Consumer Protection Act, in the contexts of jurisdiction and scope, rights of the data principal, obligations of data fiduciaries, exemptions, data protection authority, and breach of personal data.

On IAPP’s blog Privacy Perspectives, D. Shweta Reddy has assessed whether the Personal Data Protection Bill 2019 is sufficient for India to receive adequacy status from the EU.

Along with Justin Sherman, Arindrajit Basu has outlined the key global takeaways from the Personal Data Protection Bill 2019 on Lawfare.

On The Diplomat, Arindrajit has also traced the narrowing localization provisions in India, as well as Vietnam and Indonesia, and studied the actors and geopolitical tussle that has shaped these provisions.

Through a string of publicly available submissions, press statements, and other media reports, Arindrajit and Amber Sinha have tracked the political evolution of the data protection ecosystem in India, and how this has, and will continue to impact legislative and policy developments on EPW Engage.

Gurshabad Grover and Tanaya Rajwade have written on The Wire about how the Personal Data Protection Bill regulates social media.

Amber was also a guest on Suno India’s Cyber Democracy podcast, with Srinivas Kodali, to discuss how the latest version of the Personal Data Protection Bill will impact the right to privacy.

For more details visit https://cis-india.org/internet-governance/blog/compilation-of-research-on-data-protection

Governing ID: Kenya’s Huduma Namba Programme

amber — 2020-03-02T13:19:15Z

In our fourth case-study, we use our Evaluation Framework for Digital ID to examine the use of Digital ID in Kenya.

Read the case-study or download as PDF.

For more details visit https://cis-india.org/internet-governance/blog/governing-id-kenya2019s-huduma-namba-programme

Governing ID: Use of Digital ID in the Healthcare Sector

Shruti Trikanad — 2020-03-02T13:21:22Z

In our third case-study, we use our Evaluation Framework for Digital ID to examine the use of Digital ID in the healthcare sector.

Read the case-study or download as PDF.

For more details visit https://cis-india.org/internet-governance/blog/governing-id-use-of-digital-id-in-the-healthcare-sector

Governing ID: India’s Unique Identity Programme

Vrinda Bhandari — 2020-03-02T11:38:51Z

In our second case-study, we use our Evaluation Framework for Digital ID to assess India’s Unique Identity Programme.

Read the case-study or download as PDF.

For more details visit https://cis-india.org/internet-governance/governing-id-india2019s-unique-identity-programme

Governing ID:  Use of Digital ID for Verification

Shruti Trikanad — 2020-03-02T11:16:19Z

This is the first in a series of case studies, using our recently-published Evaluation Framework for Digital ID. It looks at the use of digital identity programmes for the purpose of verification, often using the process of deduplication.

Read the case-study or download as PDF.

For more details visit https://cis-india.org/internet-governance/blog/governing-id-2028use-of-digital-id-for-verification

Governing ID: A Framework for Evaluation of Digital Identity

Vrinda Bhandari, Shruti Trikanad, and Amber Sinha — 2020-03-02T13:22:43Z

As governments across the globe implement new and foundational digital identification systems (Digital ID), or modernize existing ID programs, there is an urgent need for more research and discussion about appropriate uses of Digital ID systems. This significant momentum for creating Digital ID has been accompanied with concerns about privacy, surveillance and exclusion harms of state-issued Digital IDs in several parts of the world, resulting in campaigns and litigations in countries, such as UK, India, Kenya, and Jamaica. Given the sweeping range of considerations required to evaluate Digital ID projects, it is necessary to formulate evaluation frameworks that can be used for this purpose.

This work began with the question of what the appropriate uses of Digital ID can be, but through the research process, it became clear that the question of use cannot be divorced from the fundamental attributes of Digital ID systems and their governance structures. This framework provides tests, which can be used to evaluate the governance of Digital ID across jurisdictions, as well as determine whether a particular use of Digital ID is legitimate. Through three kinds of checks — Rule of Law tests, Rights based tests, and Risks based tests — this scheme is a ready guide for evaluation of Digital ID.

View the framework or download as PDF.

For more details visit https://cis-india.org/internet-governance/blog/governing-id-a-framework-for-evaluation-of-digital-identity

Governing ID: Introducing our Evaluation Framework

Shruti Trikanad — 2020-03-02T08:03:49Z

With the rise of national digital identity systems (Digital ID) across the world, there is a growing need to examine their impact on human rights. In several instances, national Digital ID programmes started with a specific scope of use, but have since been deployed for different applications, and in different sectors. This raises the question of how to determine appropriate and inappropriate uses of Digital ID. In April 2019, our research began with this question, but it quickly became clear that a determination of the legitimacy of uses hinged on the fundamental attributes and governing structure of the Digital ID system itself. Our evaluation framework is intended as a series of questions against which Digital ID may be tested. We hope that these questions will inform the trade-offs that must be made while building and assessing identity programmes, to ensure that human rights are adequately protected.

Rule of Law Tests

Foundational Digital ID must only be implemented along with a legitimate regulatory framework that governs all aspects of Digital ID, including its aims and purposes, the actors who have access to it, etc. In the absence of this framework, there is nothing that precludes Digital IDs from being leveraged by public and private actors for purposes outside the intended scope of the programme. Our rule of law principles mandate that the governing law should be enacted by the legislature, be devoid of excessive delegation, be clear and accessible to the public, and be precise and limiting in its scope for discretion. These principles are substantiated by the criticism that the Kenyan Digital ID, the Huduma Namba, was met with when it was legalized through a Miscellaneous Amendment Act, meant only for small or negligible amendments and typically passed without any deliberation. These set of tests respond to the haste with which Digital ID has been implemented, often in the absence of an enabling law which adequately addresses its potential harms.

Rights based Tests

Digital ID, because of its collection of personal data and determination of eligibility and rights of users, intrinsically involves restrictions on certain fundamental rights. The use of Digital ID for essential functions of the State, including delivery of benefits and welfare, and maintenance of civil and sectoral records, enhance the impact of these restrictions. Accordingly, the entire identity framework, including its architecture, uses, actors, and regulators, must be evaluated at every stage against the rights it is potentially violating. Only then will we be able to determine if such violation is necessary and proportionate to the benefits it offers. In Jamaica, the National Identification and Registration Act, which mandated citizens’ biometric enrolment at the risk of criminal sanctions, was held to be a disproportionate violation of privacy, and therefore unconstitutional.

Risk based Tests

Even with a valid rule of law framework that seeks to protect rights, the design and use of Digital ID must be based on an analysis of the risks that the system introduces. This could take the form of choosing between a centralized and federated data-storage framework, based on the effects of potential failure or breach, or of restricting the uses of the Digital ID to limit the actors that will benefit from breaching it. Aside from the design of the system, the regulatory framework that governs it should also be tailored to the potential risks of its use. The primary rationale behind a risk assessment for an identity framework is that it should be tested not merely against universal metrics of legality and proportionality, but also against an examination of the risks and harms it poses. Implicit in a risk based assessment is also the requirement of implementing a responsive mitigation strategy to the risks identified, both while creating and governing the identity programme.

Digital ID programmes create an inherent power imbalance between the State and its residents because of the personal data they collect and the consequent determination of significant rights, potentially creating risks of surveillance, exclusion, and discrimination. The accountability and efficiency gains they promise must not lead to hasty or inadequate implementation.

For more details visit https://cis-india.org/internet-governance/blog/governing-id-introducing-our-evaluation-framework

Divergence between the General Data Protection Regulation and the Personal Data Protection Bill, 2019

Pallavi Bedi — 2020-02-21T11:08:50Z

Our note on the divergence between the General Data Protection Regulation and the Personal Data Protection Bill can be downloaded as a PDF here.

The European Union’s General Data Protection Regulation (GDPR), replacing the 1995 EU Data Protection Directive came into effect in May 2018. It harmonises the data protection regulations across the European Union. In India, the Ministry of Electronics and Information Technology had constituted a Committee of Experts (chaired by Justice Srikrishna) to frame recommendations for a data protection framework in India. The Committee submitted its report and a draft Personal Data Protection Bill in July 2018 (2018 Bill). Public comments were sought on the bill till October 2018. The Central Government revised the Bill and introduced the revised version of the Personal Data Protection Bill (PDP Bill) on December 11, 2019 in the Lok Sabha.

The PDP Bill has incorporated certain aspects of the GDPR, such as requirements for notice to be given to the data principal, consent for processing of data, establishment of a data protection authority, etc. However, there are some differences and in this note we have highlighted the areas of divergence between the two. It only includes provisions which are common to the GDPR and the PDP Bill. It does not include the provisions on (i) Appellate Tribunal, (ii) Finance, Account and Audit; and (iii) Non- Personal Data.

For more details visit https://cis-india.org/internet-governance/blog/divergence-between-the-general-data-protection-regulation-and-the-personal-data-protection-bill-2019

We are anonymous, we are legion

Investigating TLS blocking in India

Summary

Towards Algorithmic Transparency

After the Lockdown

India’s ‘Self-Goal’ in Telecom

What the Government Can Do

Act Quickly

Enable Spectrum Usage on Feasible Terms

‘Future of Work’ in India’s IT/IT-es Sector

Read the complete case-study here: Download (PDF)

Introduction

Objective and Scope

References

RBI Ban on Cryptocurrencies not backed by any data or statistics

Cryptocurrency Regulation in India – A brief history

A Compilation of Research on the PDP Bill

Governing ID: Kenya’s Huduma Namba Programme

Governing ID: Use of Digital ID in the Healthcare Sector

Governing ID: India’s Unique Identity Programme

Governing ID: Use of Digital ID for Verification

Governing ID: A Framework for Evaluation of Digital Identity

Governing ID: Introducing our Evaluation Framework

Rule of Law Tests

Rights based Tests

Risk based Tests

Divergence between the General Data Protection Regulation and the Personal Data Protection Bill, 2019

Governing ID:  Use of Digital ID for Verification