India's Digital Personal Data Protection Act, 2023 introduces significant obligations for organisations handling personal data. Understanding these requirements is the first step toward compliance.

Blogs / Understanding India's DPDP Act Compliance

The Digital Personal Data Protection (DPDP) Act, 2023 marks a watershed moment for data privacy in India. For the first time, Indian organisations have a comprehensive legislative framework governing how personal data must be collected, processed, stored, and shared. With penalties reaching up to ₹250 crore for non-compliance, understanding the Act's requirements is no longer optional. This article breaks down the key provisions and what they mean for your organisation.

Key roles under the DPDP Act

Key Roles and Obligations

The DPDP Act defines two primary roles: the Data Fiduciary (the organisation that determines the purpose and means of processing personal data) and the Data Principal (the individual whose data is being processed). Data Fiduciaries must ensure that personal data is collected only for lawful purposes, processed with valid consent, and protected with reasonable security safeguards. Significant Data Fiduciaries, organisations handling large volumes of sensitive data, face additional obligations including appointing a Data Protection Officer, conducting periodic data protection impact assessments, and maintaining detailed processing records.

Consent and Data Principal Rights

• Informed consent — organisations must provide clear, plain-language notices explaining what data is collected, why, and how it will be used. Consent must be freely given and specific to each purpose.
• Right to access — data principals can request a summary of all personal data being processed and the identities of entities it has been shared with.
• Right to correction and erasure — individuals can request correction of inaccurate data or complete erasure of data that is no longer necessary for the stated purpose.
• Right to grievance redressal — organisations must establish accessible grievance mechanisms and respond within prescribed timelines.
• Right to nominate — data principals can nominate another individual to exercise their rights in the event of death or incapacity.

Consent management and data principal rights
Preparing your organisation for DPDP compliance

Preparing Your Organisation for Compliance

Start with a data mapping exercise to understand what personal data your organisation collects, where it is stored, who has access, and how long it is retained. Review your consent mechanisms to ensure they meet the Act's requirements for specificity and clarity. Implement technical controls such as encryption, access controls, logging, and data loss prevention to protect personal data throughout its lifecycle. Establish a breach notification process, as the Act requires timely reporting to the Data Protection Board. Finally, train your employees on data handling responsibilities and update your privacy policies to reflect the new requirements.

Conclusion


The DPDP Act represents a fundamental shift in how Indian organisations must approach data privacy. Compliance is not merely a legal requirement. It is an opportunity to build trust with customers and demonstrate responsible data stewardship. Organisations that begin preparing now will be better positioned when enforcement begins. Contact Codesecure to discuss a DPDP readiness assessment tailored to your organisation's data processing activities.

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