The government on Wednesday said that companies working on contract for other firms, especially BPOs, will not have to follow tedious process of collecting sensitive and personal data of customers on behalf of their clients.

In April, the Department of Information Technology had notified that any person or firm collecting personal and sensitive data should obtain consent in writing through letter, fax or e-mail from the provider of the information before using it in any form, be it distribution or disclosing it to their clients.

Many outsourcing firms in the country had expressed their concern on the notification, following which DIT has clarified its position.

"A person or a firm like a BPO collecting data on behalf of its client will not have to follow such a process. If the client directly collects for using it any form then it will require to take consent in writing," an official at the Department of Information Technology told PTI.

"Any such body corporate providing services relating to collection, storage, dealing or handling of sensitive personal data or information under contractual obligation with any legal entity located within or outside India is not subject to the requirement of Rules 5 and 6," DIT said in a statement.

Rule 5 and 6 of Information Technology (Reasonable security practices and procedures and sensitive personal data or information) Rules, 2011 deal with collection and disclosure of sensitive and personal data.

The Department has classified information like password, financial information such as bank account, credit card, debit card or other payment instrument details; physical, physiological and mental health condition; sexual orientation; medical records and history; biometric information and some other as personal and sensitive data.

"We had to come out with the notification to save misuse of information on citizens, who unknowingly fall into trap of certain services and sign documents or agree to terms and condition clause on websites without reading the lengthy clauses of the companies," said the official.