Overview
The Digital Personal Data Protection Act, 2023 (DPDPA) is India's first comprehensive data protection law, receiving presidential assent in August 2023. It establishes clear rules for processing digital personal data, grants data principals (individuals) meaningful rights over their data, and imposes significant obligations on data fiduciaries (organizations). While the government is still finalizing the implementing rules, organizations operating in India should start compliance preparations now. The penalties are substantial, reaching up to INR 250 crore (approximately $30 million) per violation.
Key Definitions
| Term | DPDPA Definition |
|---|---|
| Data Principal | The individual whose personal data is being processed |
| Data Fiduciary | Organization that determines the purpose and means of processing personal data |
| Significant Data Fiduciary | Data fiduciary designated by the government based on volume, sensitivity, or risk of data processed |
| Data Processor | Entity that processes data on behalf of a data fiduciary |
| Consent Manager | Registered entity that enables data principals to manage consent through an accessible platform |
| Personal Data | Any data about an individual who is identifiable by or in relation to such data |
| Data Protection Board | The adjudicatory body that handles complaints and imposes penalties |
Lawful Bases for Processing
- Consent: Freely given, specific, informed, unconditional, and unambiguous. Must be obtained through a clear notice in plain language before or at the time of data collection.
- Legitimate Uses (without consent): Voluntary provision of data for a specified purpose, state functions and services, medical emergencies, employment purposes, and publicly available personal data.
- Note: Unlike GDPR, DPDPA does not include "legitimate interest" as a standalone lawful basis for commercial purposes.
Data Principal Rights
Under DPDPA, data principals have several enforceable rights. The right to information about what personal data is being processed. The right to correction and erasure of inaccurate or outdated personal data. The right to grievance redressal, where organizations must respond within a prescribed timeframe. The right to nominate another individual who can exercise these rights in case of death or incapacity. Data principals also have corresponding duties, including not filing false or frivolous complaints and not providing false information when exercising their rights.
Implementation Checklist
- Conduct a comprehensive data inventory mapping all personal data collection, storage, processing, and sharing activities
- Implement a consent management platform that captures and records verifiable, granular consent
- Draft clear privacy notices in plain language (and in languages specified in the Eighth Schedule of the Constitution)
- Establish mechanisms for data principals to exercise their rights including correction, erasure, and information requests
- Build internal grievance redressal processes with documented response timelines
- Review and update data processing agreements with all data processors
- Implement data protection impact assessments for high-risk processing activities
- Appoint a Data Protection Officer if designated as a Significant Data Fiduciary
- Ensure cross-border data transfer mechanisms comply with government-approved country lists
- Implement reasonable security safeguards proportionate to the personal data being processed
- Establish breach notification processes to inform the Data Protection Board and affected data principals
Penalties
DPDPA prescribes significant financial penalties for non-compliance. Failure to take reasonable security safeguards resulting in a data breach can attract penalties of up to INR 250 crore (approximately $30 million). Failure to notify the Board and data principals of a breach can result in penalties up to INR 200 crore. Non-fulfillment of obligations relating to children's data can attract up to INR 200 crore. Violation of any other DPDPA provision can result in penalties up to INR 50 crore. The Data Protection Board determines penalty amounts based on the nature, gravity, and duration of the breach.
Frequently Asked Questions
When does DPDPA come into full effect?
How does DPDPA differ from GDPR?
What qualifies as a Significant Data Fiduciary?
How are cross-border data transfers handled?
What are the requirements for children's data?
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