Section 16 of ITA, 2000 : Section 16: Security Procedures And Practices

Explanation using Example

Let's consider a hypothetical scenario. Suppose there is a major e-commerce company in India called "BuyItAll". This company conducts millions of online transactions every day. However, there have been increasing instances of data breaches and cyber thefts.

Under Section 16 of The Information Technology Act, 2000, the Central Government, acknowledging the commercial circumstances and nature of transactions, decides to prescribe new security procedures and practices. These might include stricter data encryption, two-factor authentication, or mandatory periodic password changes.

This is done to ensure the security of online transactions and protect the sensitive information of customers, thus demonstrating the application of Section 16 of The Information Technology Act, 2000.