Legal Question in Technology Law in India

Re: Is there any law against saving credit card number in your database?

There is no specific law against saving credit card number into the data base. Provided, however, if such saving of data base is against the banking secrecy of the bank/organisation which had issued the credit card and against the wishes,intention and without consent of the credit card holder, then, in such a case the organisation which

had issued the credit card or the credit card holder may proceed under the law for any misuse of credit card number which resulted due to the saving of credit card number into the data base. Normally, the credit card numbers are termed as 'privacy numbers' and it cannot be made known to the public other than the organisation and the holder of the credit card, if it is saved into the data base and if there is a possibility of a person or persons comeing to know of the number there is a chance of misuse.

Re: Is there any law against saving credit card number in your database?

Eventhough there is no law that directly deals with the issue, some of the provisions of Information Technolgy Act, in bits and pieces deals with the issue on hand, and broadly addressing the issue, if the credit card number is saved in your database for purposes other than detailed in the act, then it would be a violation of the provisions of the afore-said act and would also amount to invasion of privacy in an electronic form or media. However, the intention of the person / organisation has to be looked into on a case-to-case basis.

Re: Is there any law against saving credit card number in your database?

Section 2(1)(t) of The Information Technology Act defines what an electronic medium is. It seems that you being a Software professional, have access to credit card numbers which you would want to store in your database. Law provides that documents, records or information shall be retained for any specific period, and that requirement shall be deemed to have been satisfied if such documents, records or information are retained in electronic form. Section 7 of the aforesaid Act permits to retain such documents; records or information in electronic form if the information contained therein remains accessible so as to be usable for subsequent reference. The intention of any act determines whether an act is legal or not. Hence if the credit card number is being stored in the database for future reference then as a Software professional you would not be held liable for violation of any law.