Deepfake Alert: Sachin Tendulkar's Warning Against Technology Misuse

Introduction

In a groundbreaking move, India's Reserve Bank has embarked on a transformative journey with its Central Bank Digital Currency (CBDC) project. As the world grapples with the evolving landscape of digital finance, the implications of India's CBDC initiative extend beyond its borders, potentially reshaping global payment systems. The Union Minister of State for Finance, Shri Pankaj Chaudhary, revealed that on October 7, 2022, the Reserve Bank of India released a proposal note on Central Bank Digital Currency (CBDC). Two pilot projects using blockchain-based technology are described in the concept note: Digital Rupee-Wholesale (e₹-W) and Digital Rupee-Retail (e₹-R). Launched on November 1, 2022, the bulk trading pilot aims to increase intermediary competitiveness, particularly in the resolution of trades in the secondary market involving sovereign debt. In parallel, on December 1, 2022, the retail banking pilot, known as e₹-R, got underway in a limited user group with eight banks taking part in stages.

The digital asset known as e₳-R is issued across financial institutions for Person-to-Person (P2P) and Person-to-Merchant (P2M) transactions. It is intended to serve as a virtual currency that represents legal money and exhibits characteristics similar to actual cash. Based on input gathered during the continuing trial phases, the RBI intends to progressively broaden the pilot project's scope.

Central Bank Digital Currency Pilot Projects

Central Bank Digital Currency (CBDC), which the Central Bank of India is promoting, may easily perform an essential part in payments made across borders, according to Reserve Bank Governor Shaktikanta Das. The CBDC is going to be expanded to the international financial markets after being implemented as a trial in both the retail and wholesale industries.

CBDC in International Payments

He emphasized that although physical currency will still exist, the CBDC will eventually replace all forms of money worldwide.  

"CBDC is going to be the future currency of the world and it is necessary that every central bank, every country works on CBDC," he stated. He also stated that as worldwide commerce moves more and more around science and technology, CBDCs will play a significant role since they can effectively and affordably speed up payment processing across different countries. Regarding India's foreign exchange reserves, the governor stated that the selection to increase the resources as a safety net and protection versus contagion possibilities was made consciously.

CBDCs' Place in the Transnational Economic Revolution

In certain economies worldwide, having a CBDC internationally accessible could lead to more replacements for foreign currencies rather than the home currencies, which could cause financial aggregates to become volatile and change the mix of instruments of exchange.

CBDC may have benefits related to first-mover savings of scale, and other consequences even in everyday circumstances. If nations with global currencies have established CBDCs, they could strengthen current advantages and disadvantages, including consequences, particularly in terms of revenue. In a similar vein, CBDC might alter the structure of international liquidity while safeguarding asset supply. Additionally, and particularly if imposed abruptly, CBDC may, in certain circumstances, result in significant capital movements and associated repercussions on the foreign exchange rate as well as additional asset prices. Furthermore, nations may encounter difficulties in getting ready for virtual currencies issued by central banks.

The worldwide and international scope of CBDCs accessible to immigrants may become particularly apparent in situations where there is a widespread flight safety concern. In these circumstances, converting a CBDC into a foreign currency would make it possible for capital markets to deleverage more quickly. The elimination of debt challenges could show up as tight finance constraints and abrupt swings in foreign exchange markets if CBDCS expedited its flight from uncertainty.

Deposits of Foreign Exchange and Self-Dependency

Reserve Bank Governor Shaktikanta Das stated "We must rely on ourselves. We must maintain our robust reserves. In order to achieve that goal, we have been amassing quite substantial reserves, and the outside world has come to feel quite confident that India would be able to fulfil its contractual responsibilities to the international community no matter what the obstacles," 

Involvement of RBI in the Currency Market

Given that the trading community was confident that the Reserve Bank of India would be capable of and able to fulfil its contractual responsibilities, the value of the Indian rupee did not decline as dramatically. The RBI governor stated that the RBI does participate in the economy, but that "our engagement operates in two ways," he would not hesitate to acknowledge this.

The Value of Macroeconomic and Budgetary Cooperation

According to RBI Governor Das, the RBI makes purchases and sales of dollars based on the direction in which the financial sector is trending. However, the RBI does not intend to set a certain level for the rupee because it does not consider any specific threshold for the Indian rupee's conversion rate against the US dollar. He also emphasized how crucial it is for both the financial and monetary authorities to work together.

Conclusion

India's CBDC project signals a transformative shift in the global digital finance landscape. Governor Shaktikanta Das envisions CBDCs as the future global currency, emphasizing their role in international payments. The potential impact on financial systems, cross-border transactions, and the need for self-reliance underscore the significance of India's CBDC initiative in shaping the evolving dynamics of the digital economy. As the project progresses, close cooperation between financial and monetary authorities becomes imperative for navigating the challenges and opportunities associated with this groundbreaking venture.

References

• https://economictimes.indiatimes.com/news/economy/policy/central-bank-digital-currency-can-play-important-role-in-cross-border-payment-rbi-guv/articleshow/104706717.cms
• https://www.bis.org/cpmi/publ/d174.pdf
• https://bfsi.economictimes.indiatimes.com/news/fintech/explained-how-rbi-is-leveraging-upi-to-push-the-use-of-retail-cbdc/103591989
• https://www.imf.org/en/News/Articles/2022/02/09/sp020922-the-future-of-money-gearing-up-for-central-bank-digital-currency
• https://www.business-standard.com/economy/news/cbdc-pilot-projects-show-promising-results-rbi-governor-shaktikanta-das-123102601171_1.html

Introduction

Cert-In (Indian Computer Emergency Response Team) has recently issued the “Guidelines on Information Security Practices” for Government Entities for Safe & Trusted Internet. The guideline has come at a critical time when the Draft Digital India Bill is about to be released, which is aimed at revamping the legal aspects of Indian cyberspace. These guidelines lay down the policy framework and the requirements for critical infrastructure for all government organisations and institutions to improve the overall cyber security of the nation.

What is Cert-In?

A Computer Emergency Response Team (CERT) is a group of information security experts responsible for the protection against, detection of and response to an organisation’s cybersecurity incidents. A CERT may focus on resolving data breaches and denial-of-service attacks and providing alerts and incident handling guidelines. CERTs also conduct ongoing public awareness campaigns and engage in research aimed at improving security systems. The Ministry of Electronics and Information Technology (MeitY) oversees CERT-In. It regularly releases alerts to help individuals and companies safeguard their data, information, and ICT (Information and Communications Technology) infrastructure.

Indian Computer Emergency Response Team (CERT-In) has been established and appointed as national agency in respect of cyber incidents and cyber security incidents in terms of the provisions of section 70B of Information Technology (IT) Act, 2000.

CERT-In requests information from service providers, intermediaries, data centres, and body corporates to coordinate reaction actions and emergency procedures regarding cyber security incidents. It is a focal point for incident reporting and offers round-the-clock security services.  It manages cyber occurrences that are tracked and reported while continuously analysing cyber risks. It strengthens the security barriers for the Indian Internet domain.

Background

India is fast becoming one of the world’s largest connected nations – with over 80 Crore Indians  (Digital Nagriks) presently connected and using the Internet and cyberspace – and with this number is expected to touch 120 Crores in the coming few years. The Digital Nagriks of the country are using the Internet for business, education, finance and various applications and services including Digital Government services. Internet provides growth and innovation and at the same time it has seen rise in cybercrimes, user harm and other challenges to online safety. The policies of the Government are aimed at ensuring an Open, Safe & Trusted and Accountable Internet for its users. Government is fully cognizant and aware of the growing cyber security threats and attacks.

It is the Government of India’s objective to ensure that Digital Nagriks experience a Safe & Trusted Internet. Along with ubiquitous applications of Information & Communication Technologies (ICT) in almost all facets of service delivery and operations, continuously evolving cyber threats have become a concern for the Government. Cyber-attacks can come in the form of malware, ransomware, phishing, data breach etc., that adversely affect an organisation’s information and systems. Cyber threats leading to cyber-attacks or incidents can compromise the confidentiality, integrity, and availability of an organisation’s information and systems and can have far reaching impact on essential services and national interests. To protect against cyber threats, it is important for government entities to implement strong  cybersecurity measures and follow best practices. As ICT infrastructure of the Government entities is one of the preferred targets of the malicious actors, responsibility of implementing good cyber security practices for protecting computers, servers, applications, electronic systems, networks, and data from digital attacks, also remain with the ICT assets’ owner i.e. Government entity.

What are the new Guidelines about?

The Government of India (distribution of business) Rules, 1961’s First Schedule lists a number of Ministries, Departments, Secretariats, and Offices, along with their affiliated and subordinate offices, which are all subject to the rules. They also comprise all governmental organisations, businesses operating in the public sector, and other governmental entities under their administrative control.

“The government has launched a number of steps to guarantee an accessible, trustworthy, and accountable digital environment. With a focus on capabilities, systems, human resources, and awareness, we are extending and speeding our work in the area of cyber security, according to Rajeev Chandrasekhar, Minister of State for Electronics, Information Technology, Skill Development, and Entrepreneurship.

The Recommendations

• Various security domains are covered in the standards, including network security, identity and access management, application security, data security, third-party outsourcing, hardening procedures, security monitoring, incident management, and security audits.
• For instance, the rules advise using only a Standard User (non-administrator) account to use computers and laptops for regular work regarding desktop, laptop, and printer security in the workplace. Users may only be granted administrative access with the CISO’s consent.
• The usage of lengthy passwords containing at least eight characters that combine capital letters, tiny letters, numerals, and special characters; Never save any usernames or passwords in your web browser. Likewise, never save any payment-related data there.
• They include guidelines created by the National Informatics Centre for Chief Information Security Officers (CISOs) and staff members of Central government Ministries/Departments to improve cyber security and cyber hygiene in addition to adhering to industry best practises.

Conclusion

The government has been proactive in the contemporary times to eradicate the menace of cybercrimes and therreats from the Indian cyberspace and hence now we have seen a series of new bills and polices introduced by the Ministry of Electronics and Information Technology, and various other government organisations like Cert-In and TRAI. These policies have been aimed towards being relevant to time and current technologies. The threats from emerging technologies like web 3.0 cannot be ignored and hence with active netizen participation and synergy between government and corporates will lead to a better and improved cyber ecosystem in India.

Introduction

An age of unprecedented problems has been brought about by the constantly changing technological world, and misuse of deepfake technology has become a reason for concern which has also been discussed by the Indian Judiciary. Supreme Court has expressed concerns about the consequences of this quickly developing technology, citing a variety of issues from security hazards to privacy violations to the spread of disinformation. In general, misuse of deepfake technology is particularly dangerous since it may fool even the sharpest eye because they are almost identical to the actual thing.

SC judge expressed Concerns: A Complex Issue

During a recent speech, Supreme Court Justice Hima Kohli emphasized the various issues that deepfakes present. She conveyed grave concerns about the possibility of invasions of privacy, the dissemination of false information, and the emergence of security threats. The ability of deepfakes to be created so convincingly that they seem to come from reliable sources is especially concerning as it increases the potential harm that may be done by misleading information.

Gender-Based Harassment Enhanced

In this internet era, there is a concerning chance that harassment based on gender will become more severe, as Justice Kohli noted. She pointed out that internet platforms may develop into epicentres for the quick spread of false information by anonymous offenders who act worrisomely and freely. The fact that virtual harassment is invisible may make it difficult to lessen the negative effects of toxic online postings. In response, It is advocated that we can develop a comprehensive policy framework that modifies current legal frameworks—such as laws prohibiting sexual harassment online —to adequately handle the issues brought on by technology breakthroughs.

Judicial Stance on Regulating Deepfake Content

In a different move, the Delhi High Court voiced concerns about the misuse of deepfake and exercised judicial intervention to limit the use of artificial intelligence (AI)-generated deepfake content. The intricacy of the matter was highlighted by a division bench. The bench proposed that the government, with its wider outlook, could be more qualified to handle the situation and come up with a fair resolution. This position highlights the necessity for an all-encompassing strategy by reflecting the court's acknowledgement of the technology's global and borderless character.

PIL on Deepfake 

In light of these worries, an Advocate from Delhi has taken it upon himself to address the unchecked use of AI, with a particular emphasis on deepfake material. In the event that regulatory measures are not taken, his Public Interest Litigation (PIL), which is filed at the Delhi High Court, emphasises the necessity of either strict limits on AI or an outright prohibition. The necessity to discern between real and fake information is at the center of this case. Advocate suggests using distinguishable indicators, such as watermarks, to identify AI-generated work, reiterating the demand for openness and responsibility in the digital sphere.

The Way Ahead: 

Finding a Balance

• The authorities must strike a careful balance between protecting privacy, promoting innovation, and safeguarding individual rights as they negotiate the complex world of deepfakes. The Delhi High Court's cautious stance and Justice Kohli's concerns highlight the necessity for a nuanced response that takes into account the complexity of deepfake technology.
• Because of the increased complexity with which the information may be manipulated in this digital era, the court plays a critical role in preserving the integrity of the truth and shielding people from the possible dangers of misleading technology. The legal actions will surely influence how the Indian judiciary and legislature respond to deepfakes and establish guidelines for the regulation of AI in the nation. The legal environment needs to change as technology does in order to allow innovation and accountability to live together.

Collaborative Frameworks: 

• Misuse of deepfake technology poses an international problem that cuts beyond national boundaries. International collaborative frameworks might make it easier to share technical innovations, legal insights, and best practices. A coordinated response to this digital threat may be ensured by starting a worldwide conversation on deepfake regulation.

Legislative Flexibility: 

• Given the speed at which technology is advancing, the legislative system must continue to adapt. It will be required to introduce new legislation expressly addressing developing technology and to regularly evaluate and update current laws. This guarantees that the judicial system can adapt to the changing difficulties brought forth by the misuse of deepfakes.

AI Development Ethics: 

• Promoting moral behaviour in AI development is crucial. Tech businesses should abide by moral or ethical standards that place a premium on user privacy, responsibility, and openness. As a preventive strategy, ethical AI practices can lessen the possibility that AI technology will be misused for malevolent purposes.

Government-Industry Cooperation: 

• It is essential that the public and commercial sectors work closely together. Governments and IT corporations should collaborate to develop and implement legislation. A thorough and equitable approach to the regulation of deepfakes may be ensured by establishing regulatory organizations with representation from both sectors.

Conclusion

A comprehensive strategy integrating technical, legal, and social interventions is necessary to navigate the path ahead. Governments, IT corporations, the courts, and the general public must all actively participate in the collective effort to combat the misuse of deepfakes, which goes beyond only legal measures. We can create a future where the digital ecosystem is safe and inventive by encouraging a shared commitment to tackling the issues raised by deepfakes. The Government is on its way to come up with dedicated legislation to tackle the issue of deepfakes. Followed by the recently issued government advisory on misinformation and deepfake.

References:

• https://www.medianama.com/2023/12/223-chaitanya-rohilla-petition-deepfakes-delhi-hc/
• https://legal.economictimes.indiatimes.com/news/litigation/sc-judge-voices-concern-over-online-harassment-says-deepfake-tech-raises-privacy-invasion-alarms/105872768