The move assumes significance on account of growing digital transactions as also the rising concerns around safety of personal data of citizens.
The panel, headed by Justice B N Srikrishna, former Judge of Supreme Court, will make specific suggestions to the government on principles to be considered for data protection and also suggest a draft data protection bill.
The panel will identify key data protection issues in India and recommend ways to address them, according to an official note issued by Ministry of Electronics and IT.
The terms of reference of the committee include studying various issues relating to data protection, recommending principles that need to be considered for data protection in India and suggesting a draft data protection bill.
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The IT Ministry, in consultation with the chairperson and other members, will provide the panel "necessary information" within eight weeks to enable the newly constituted body to start its discussions on the subject.
Other members of the panel include Aruna Sundararajan, Secretary, Department of Telecom, Ajay Bhushan Pandey, CEO of UIDAI (Aadhaar-issuing authority, Ajay Kumar, Additional Secretary, IT Ministry, Gulshan Rai, National Cyber Security Coordinator, and Rajat Moona, Director, IIT Raipur, among others.