India's Digital Personal Data Protection Act introduces significant obligations for data fiduciaries. Here's what your organisation needs to know to achieve and maintain compliance.
The Digital Personal Data Protection Act, 2023 (DPDPA) represents India's first comprehensive data protection legislation, similar in scope to the EU's GDPR. After years of drafts and public consultations, the Act establishes clear obligations for organisations that collect and process personal data of Indian citizens. With penalties reaching up to 250 crore for non-compliance, understanding and implementing DPDPA requirements is no longer optional.
Key Obligations for Data Fiduciaries
Under DPDPA, any entity that determines the purpose and means of processing personal data is classified as a Data Fiduciary. This includes most businesses operating in India. Key obligations include obtaining free, specific, informed, and unconditional consent before processing personal data, providing clear notice about data collection purposes, and implementing reasonable security safeguards.
Data Fiduciaries must also ensure data accuracy, delete personal data once the purpose of collection is fulfilled, and establish a grievance redressal mechanism. Significant Data Fiduciaries, designated by the government based on volume and sensitivity of data processed, face additional obligations including appointing a Data Protection Officer and conducting periodic audits.
Consent Management Done Right
Consent under DPDPA must be granular and purpose-specific. Blanket consent forms that bundle multiple processing purposes into a single checkbox will not pass scrutiny. Each purpose needs its own clear, affirmative consent, and users must be able to withdraw consent as easily as they gave it. Building compliant consent workflows requires rethinking how your application collects and stores consent records.
Building Your Compliance Roadmap
Start with a comprehensive data mapping exercise to understand what personal data you collect, where it flows, who has access, and how long it is retained. This audit forms the foundation for everything else. Next, review and update your privacy notices, consent mechanisms, and data processing agreements with vendors. Finally, establish processes for handling data principal rights requests, breach notifications, and regular compliance reviews.
Automation tools can significantly reduce the burden of ongoing compliance. AI-powered platforms can continuously monitor data flows, flag anomalies, and generate audit-ready reports, turning compliance from a periodic project into a continuous process.
