What are Digital Personal Data Protection Rules?

Source: The post “What are Digital Personal Data Protection Rules?” has been created, based on “What are Digital Personal Data Protection Rules?” published in “The Hindu” on 17th November 2025.

UPSC Syllabus: GS Paper 2- Governance

Context: The Digital Personal Data Protection (DPDP) Act, 2023 establishes a comprehensive legal framework for the protection of personal data in India, aligning with global standards such as the General Data Protection Regulation (GDPR). This Act regulates how businesses and government bodies handle citizens’ digital data, ensuring privacy, security, and accountability. Additionally, it introduces amendments to the Right to Information (RTI) Act, 2005, addressing the balance between personal privacy and public transparency.

Key Features of the Digital Personal Data Protection (DPDP) Act:

1. Definition of Data Fiduciaries and Data Principals: Data fiduciaries (individuals or entities handling data) must manage and protect the personal data of data principals (individuals whose data is collected), ensuring its safe processing, encryption, and security.
2. Informed Consent Requirement: Data fiduciaries are required to obtain informed consent from data principals before collecting, processing, or sharing data. The consent must specify the purpose, nature, and duration of data collection.
3. Rights of Data Principals: Data principals have the right to access, correct, or delete their data. If they become inactive or request deletion, data fiduciaries are obligated to comply.
4. Data Breaches and Penalties: If a data breach occurs, data fiduciaries must report it within a specified time frame. Fines for non-compliance range from ₹10,000 to ₹250 crore depending on the severity of the breach.
5. Appointment of a Data Protection Officer (DPO): A DPO must be appointed by data fiduciaries to ensure compliance with the DPDP Act and manage data security and breaches.
6. Restrictions on Data Transfers: The Act imposes restrictions on cross-border data transfers, mandating that sensitive personal data is stored and processed within India, unless authorized otherwise.

Relation to the Right to Information (RTI) Act, 2005:

1. Amendment to the RTI Act: The RTI Act, 2005 has been amended to protect personal information from disclosure, allowing government bodies to refuse requests for personal data, even if public interest is involved.
2. The amended Section 8(1) of the RTI Act aligns with the DPDP Act by introducing restrictions on revealing private information unless there is a significant public interest.
3. Controversy and Opposition: The amendment has sparked controversy, with critics arguing that it could be used to limit transparency and obstruct accountability, particularly in cases where government officials’ actions need to be scrutinized.
4. Transparency and civil rights groups, including those associated with the Mazdoor Kisan Shakti Sangathan (MKSS), have expressed concerns that the amendment could shield government activities from public scrutiny under the guise of privacy.

Challenges in the Implementation of the DPDP Act:

1. Enforcement and Compliance Issues: The DPDP Act’s effective enforcement depends on the formation of the Data Protection Board of India (DPBI). However, key aspects of the Act, such as the creation of the DPBI, have yet to be fully implemented. This delay hinders the enforcement of data protection regulations.
2. Balancing Privacy and Transparency: The amendment to the RTI Act has created a conflict between privacy rights and public transparency. Striking a balance between the right to privacy and the public’s right to access information remains a challenge, as it could limit citizens’ access to crucial information about government operations.
3. Data Fiduciary Accountability: While the Act mandates data fiduciaries to implement robust data security measures, ensuring compliance across various industries and sectors can be a logistical and financial challenge. Small businesses, in particular, may struggle to meet the regulatory requirements, including appointing a Data Protection Officer (DPO) and reporting data breaches promptly.
4. Public Awareness and Education: A lack of widespread awareness among data principals (citizens) about their rights under the DPDP Act could hinder its effectiveness. Ensuring that people are informed about their right to access, modify, or delete their data is crucial for the success of the Act.
5. Resistance from Government Bodies: Despite the DPDP Act’s protections, government bodies may resist certain provisions, such as the restriction on disclosing personal information, leading to potential conflicts with citizens’ rights to public information under the RTI Act.
6. Cross-Border Data Transfers: The Act’s restrictions on cross-border data transfers may face opposition from multinational corporations and foreign governments, as it could disrupt global data flows. This could also affect India’s participation in global digital trade and limit access to international data processing resources.

Way Forward:

1. Effective Implementation and Infrastructure Development: India must expedite the formation of the Data Protection Board of India (DPBI) and ensure that the Data Protection Officer (DPO) role is well-defined and resourced across businesses. This would ensure consistent enforcement and monitoring of the DPDP Act.
2. Public Awareness Campaigns: Widespread awareness initiatives must be launched to inform citizens about their rights under the DPDP Act, the process for consent management, and their ability to seek redress if their data is mishandled.
3. Regulation of Government Transparency: A balanced approach is needed to ensure that government data is made available for public scrutiny while respecting individuals’ right to privacy. Clear guidelines should be set to ensure transparency without compromising personal data.
4. Engagement with Stakeholders: Continued dialogue with industry stakeholders, including businesses and technology firms, will be essential to address challenges related to cross-border data flow and data security compliance.

Conclusion: The DPDP Act, 2023 is a crucial step toward protecting personal data in India. However, the effective implementation of the Act faces several challenges, including balancing privacy with transparency, ensuring compliance across sectors, and fostering public awareness. India must address these challenges to ensure that the DPDP Act achieves its goal of safeguarding digital privacy while promoting transparency and accountability in governance.

Question: What are the key features of the Digital Personal Data Protection (DPDP) Act, 2023? How does it aim to protect personal data and how does it relate to the Right to Information (RTI) Act, 2005? Discuss the challenges associated with its implementation.