New VPN Rules for India are Double Edged Sword, Know Why

VPN Rules

If you are following the announcements made by the Indian Computer Emergency Team (CERT-In), you might have heard about the new VPN rules. If you haven’t, well, CERT-In has directed all the VPN companies to store user data for up to five years. This data needs to be maintained even when the user has deleted the account inside the VPN application/platform. Along with VPN companies, the same direction has been given to data centers, crypto exchanges, and more.

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Now, VPN companies will have to maintain crucial data such as IP addresses, user names, and usage patterns, amongst other things. Parties which don’t comply with the new rules announced by the CERT-In can face jail time of up to one year.

Specifically, VPN companies will need to maintain KYC data of the users which include – the name of subscriber/customers, IP addresses allotted to the customer, email address and IP address at the time of registration, the purpose of hiring services, validated address and contact numbers, and ownership pattern of the subscribers.

Sounds really bad right? Well, there’s a reason behind everything that the government decides to do. There is a pretty good one behind this decision as well.

India Wants to Reduce Financial Frauds

VPN hides the IP address and location of the user when sharing a network. It is useful in cases when you are online banking using public Wi-Fi networks. With a VPN active, another layer of encryption is added to your data. This helps with more secure communication.