Introduction
The Digital Personal Data Protection Rules, 2025 ("Draft Rules")1 aim to implement the Digital Personal Data Protection Act, 2023 (DPDP Act). Released for public feedback on January 3, 2025, the Draft Rules serve as the framework for enforcing the Act, ensuring data privacy compliance in India. Stakeholders can submit their input until February 18, 2025.
Key Features of the Draft Rules
- Balanced Regulation: Startups and MSMEs have lower compliance burdens, while Significant Data Fiduciaries (SDFs) face stricter obligations.
- Sector-Specific Data Protection: Compliance measures tailored to different industries, ensuring a fair regulatory environment.
- Inclusive Framework: The rules are based on global best practices and stakeholder input.
Enforcement Mechanism
The enforcement will be in phases, with the establishment of the Data Protection Board (DPB) as the first step.
Data Fiduciary Obligations
1. Consent Notices
Data Fiduciaries must provide clear, standalone notices explaining:
- Categories of personal data collected
- Purpose of data processing
- Options for consent revocation
2. Personal Data Breach Notification
A Data Fiduciary must notify the Data Protection Board within 72 hours of a data breach and inform affected Data Principals immediately.
3. Data Retention Limits
Online gaming platforms with over 50 lakh users and social media or e-commerce intermediaries with over 2 crore users must delete personal data within three years of the last account login.
4. Security Safeguards
- Encryption & Obfuscation: Secure storage of personal data.
- Access Controls: Restricted access to prevent unauthorized data processing.
- Audit Logs: Maintaining logs for at least one year.
5. Data Protection Impact Assessments (DPIA)
Significant Data Fiduciaries must conduct Data Protection Impact Assessments to mitigate risks and ensure compliance.
6. Processing of Child & Disabled Persons' Data
Verifiable parental consent is required for processing a child’s personal data. Similar consent rules apply to disabled individuals.
7. Data Localization & Cross-Border Transfers
The rules emphasize data localization, ensuring data sovereignty and controlled cross-border data transfers.
8. Consent Managers
The Act provides for Consent Managers to facilitate data principals in managing and revoking consent. Eligibility criteria for Consent Managers include financial stability, governance compliance, and maintaining records for seven years.
Conclusion
The Draft Rules lay a strong foundation for data privacy in India. To participate in the public consultation, visit:
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Ref - 1https://www.meity.gov.in/
March 3, 2025