Bank’s resistance: There may also be resistance by banks in sharing the information about the financial details of their clients.
Risk of data theft: Since it is a digital database there is the risk of exposure to data piracy and data theft.
Supreme court privacy judgment: The recent judgment by the Supreme Court in privacy matters has further complicated the issue of collection of data.
Way Forward
The setting up of the Information utility is an important step in quickly resolving the insolvency disputes. But to overcome the above challenges government must enact a comprehensive Right to privacy act and Data protection law. This will help in resolving the current impediments before the Insolvency law.
IMF Suggests India To Set Up Independent Fiscal Council
In News
The International Monetary Fund (IMF) has suggested India to consider setting up an Independent Fiscal Council (IFC).
IMF also claimed that setting up such council has led to better outcomes in the countries where it has been introduced in terms of transparency and accountability towards the general public and also in terms of the quality of the policy debate in the country itself.
The NK Singh Committee (FRBM Review Committee) and 14th finance commission of India have also supported the same idea.
