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India’s Draft DPDP Rules, 2025: Key Updates on Data Privacy Policies

The Indian government has unveiled the draft Digital Personal Data Protection Rules (DPDP Rules), 2025, under the Digital Personal Data Protection Act, 2023, signaling a new era in data governance. Open for public feedback until February 18, 2025, the draft introduces comprehensive guidelines on data privacy, emphasizing user-centric consent mechanisms, robust data retention practices, and heightened transparency standards.

As a leader in crafting bespoke data privacy policies, Zedroit delves deep into the technical specifics of these draft rules, offering expert insights and guidance for businesses navigating the evolving regulatory landscape.

Key Terminologies Under the DPDP Framework

  1. Data Fiduciary:

An entity is responsible for determining the purpose and means of processing personal data. These entities are mandated to ensure informed consent, secure handling of user data, and provide mechanisms to exercise rights such as data access, correction, and deletion.

  • Data Processor:

A third-party entity that processes personal data strictly on behalf of a Data Fiduciary. They operate under contractual obligations, ensuring compliance with prescribed data protection standards.

  • Data Principal:

The individual whose personal data is processed. The act recognizes their rights to access, correct, delete, or withdraw consent and to file grievances concerning their data.

  • Consent Manager:

A third-party platform facilitating seamless consent management for data principals. These platforms must adhere to strict standards of transparency, interoperability, and compliance, supervised by the Data Protection Board (DP Board).

Critical Features of the DPDP Rules, 2025

The draft rules outline a meticulous framework focusing on key pillars of privacy governance:

  1. Notice Obligations for Data Fiduciaries:

Data fiduciaries must issue clear and standalone privacy notices covering the following:

  • Categories of personal data being collected.
  • Purpose of processing, with detailed examples of associated benefits or services.
  • Mechanisms for withdrawing consent or addressing grievances.
  • Communication protocols for data principals to manage data queries effectively.
  • Stringent Consent Management Requirements:

Consent Managers must:

  • Be Indian-registered entities with a net worth exceeding INR 20 million (US$233,414).
  • Operate interoperable platforms facilitating data principals’ review and withdrawal of consent.
  • Obtain prior approval from the Data Protection Board (DP Board) before altering ownership or control.
  • Minimization and Purpose Limitation:

Data processing must be limited to specified purposes, ensuring data is collected, processed, and retained strictly as necessary.

  • Data Retention and Disposal:

Companies, including e-commerce platforms and social media providers with vast user bases, must delete personal data after three years of inactivity, ensuring no unnecessary data storage.

  • Breach Notification and Accountability:

In case of personal data breaches:

  • Data fiduciaries must inform affected individuals, outlining the nature and mitigation steps.
  • Notifications to the DP Board must occur within 72 hours, enhancing accountability.
  • Safeguards for Sensitive Data Processing:

Sensitive data must be encrypted, and access must be strictly controlled, ensuring compliance with data anonymization standards when necessary for research or statistics.

Implications for Businesses

The DPDP Rules 2025 necessitate extensive operational and compliance upgrades for businesses relying on data processing. Key considerations include:

  • Developing Privacy-First Policies: Crafting detailed privacy policies that address user rights, data lifecycle management, and consent withdrawal mechanisms.
  • Enhanced Privacy-by-Design Systems: Incorporating features like dynamic data minimization and real-time consent auditing into digital platforms.
  • Periodic Data Protection Impact Assessments (DPIAs): Conducting DPIAs to evaluate risks posed by high-scale data processing and algorithmic systems, ensuring compliance with regulatory standards.

For small and medium enterprises (SMEs), adherence to these rules might entail additional investments in privacy architecture and resource allocation. Collaboration with policy experts like Zedroit can ensure a seamless transition and sustained compliance.

Advantages for Users

From a user’s perspective, the DPDP Rules empower individuals with:

  • Granular Consent Mechanisms: Transparent control over how personal data is processed and shared.
  • Enhanced Transparency: Access to detailed data handling practices and purpose declarations.
  • Accountability Frameworks: Ensure that breaches are promptly communicated and mitigated.

These advancements lay the groundwork for fostering trust between users and businesses, aligning with global data protection practices.

Challenges and Concerns

Despite its forward-looking framework, the draft rules present challenges, such as:

  • Potential overlaps with existing regulations like the IT Act of 2000, which requires six-hour breach reporting to CERT-In.
  • Implementation complexities for smaller businesses without robust data processing infrastructures.

At Zedroit, we specialize in delivering actionable strategies and privacy-focused policies for businesses to meet and exceed compliance requirements. Contact us today to fortify your business’s data privacy landscape.

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