With the rise of worldwide data threats and attacks, data privacy acts are springing up across the globe. It may be relatively unknown, but India for one has established a data privacy regulation called the Digital Personal Data Protection (DPDP) Act, passed back in 2023. Established to protect digital personal data and regulate its processing, the DPDP Act aligns with global privacy laws like the EU’s General Data Protection Regulation (GDPR), which we are all familiar with, yet it has its own unique set of rules and requirements.
It’s important to understand the key aspects of the DPDP Act and what you should do to stay compliant. In short, if your organization handles the personal data of residents in India, you need to be prepared.
What is the DPDP Act?
The DPDP Act is India’s own regulation to address concerns over data privacy and security. It applies to organizations that store, collect, or process digitized personal data of individuals in India, regardless of where the company is based. The law emphasizes clear guidelines on data processing, user consent, and penalties for non-compliance.
Some of the key highlights of DPDP you need to know about include:
- Data fiduciary responsibilities – Organizations handling personal data must implement robust security measures, restrict access based on need, and maintain data protection accountability. In some cases, they must also appoint a Data Protection Officer (DPO).
- Consent that is explicit – Before processing personal data, organizations must get clear, affirmative consent from individuals. Users must actively agree to data collection – pre-checked boxes or implied permissions won’t cut it.
- Access and erasure rights – Individuals have the right to know what data an organization holds about them. They can request updates, corrections, or deletion of their data – essentially giving them the power to have control over their personal information.
- Data transfer across borders – The Indian government has the authority to regulate the transfer of personal data outside of India to make sure that its residents’ data is not mishandled or exploited in countries with weaker privacy laws.
- Strict penalties – Non-compliance can result in hefty fines, reaching up to INR 250 crore ($30 million USD). For businesses failing to obtain proper consent, mishandling data, or violating data security protocols, it likely will also mean big financial and reputational damages.
Comparing India’s DPDP Act to the EU’s GDPR
It’s clear there are major similarities between the DPDP Act and GDPR, since they both emphasize data rights, consent, and security. But there are also differences which reflect regional approaches to data protection and the specific needs of each jurisdiction. Understanding these distinctions is important for organizations operating within multiple regulatory frameworks.
Some of these differences include:
- Scope of application – GDPR applies broadly to any organization handling EU citizens’ data, while DPDP is specific to Indian residents.
- Data localization – While GDPR allows free movement of data across the EU, DPDP instills restrictions on transferring sensitive personal data outside of India.
- Reporting of a breach – While DPDP’s reporting requirements are still evolving, GDPR establishes strict and specific breach notification timelines.
Why DPDP compliance matters
Pretending you don’t know the DPDP Act exists or ignoring it all together isn’t an option. With India’s skyrocketing digital economy, regulatory compliance is extremely important. Organizations that fail to comply will risk reputational damage, legal penalties, and the loss of consumer trust.
However, a well-structured data protection strategy can provide businesses with not only compliance, but a competitive advantage. By demonstrating a commitment to data privacy, they can build stronger relationships with customers and stakeholders. Proactive steps for compliance also minimize the risk of security breaches, ensuring long-term operational stability.
How technology can help
Navigating data privacy regulations can feel overwhelming. However, approaches such as AI-driven data security governance can help businesses maintain compliance by:
- Discovering and classifying structured and unstructured personal and sensitive data across cloud and on-premises repositories.
- Monitoring and autonomously remediating data access and sharing to detect risky permissions, overexposed data, and unauthorized sharing.
- Automating compliance monitoring to ensure your data practices align with the DPDP Act’s requirements.
- Obtaining real-time insights to mitigate risks and prevent data breaches and unauthorized access.
India’s DPDP Act is a major step toward stronger data privacy and protection. With the proper intelligent data security solutions and practices in place, you can stay ahead of compliance challenges and keep data protected.
